Explain why quantity demanded does not change in response to an increase or decrease in price.

Elastic vs Inelastic Demand

*Name a specific good or service that has inelastic demand .

*Explain why quantity demanded does not change in response to an increase or decrease in price.

*Name a specific good or service that has elastic demand (it has a relatively flat demand curve).

*Explain why quantity demanded does change a lot in response to an increase or decrease in price.

*Which of these two goods is most likely to be taxed.