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cars elastic or inelastic?

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Hi there, to my extended, I got a big question mark when I started to think about if a car is an inelastic good, or elastic?

what would u say? and why?

In addition is a car a normal or inferior good?

I think in general cars are inelastic, but when only looking at cars (disregarding other goods) they are elastic, there are petrol, diesel, biogas, natural gas cars etc...

Edited by energetic

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You'll have to be a little more specific.

they may be counted as Elastic as well if we compare cars to other things...

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You'll have to be a little more specific.

they may be counted as Elastic as well if we compare cars to other things...

I mean in general, cars can be said to be inelastic because many substitutes are not available, when talking

about the cost. It's cheaper to have a car than a bus, right?

so in this sence a car is inelastic, but comparing to other cars, a car will be elastic because there are many car

models to choose between.

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^he's right.

Depending on the type of car, it could either be elastic or inelastic. Also, consider the substitutes for this type of car, for example, we could switch to public transportation. (you must consider subs)

It could be a luxury car, or some rust box. Have you considered if it was a Veblen good, where as price increases, the demand increases? Maybe the car holds some special feature, that would make it inelastic.

If you are talking about a general car, I'd still say it is elastic, we would substitute a car for a lower priced car, or switch to public transportation, biking or commuting.

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There are two types of cars in my research, one on petrol and the other on diesel, I've found out they both are inferior goods, as price rise, quantity demanded falls. They are also relative cheap cars. And when comparing the two cars to each other they are elastic ( fall in price, leads to an increase in revenue), so overall a car would be elastic?

Edited by energetic

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There are two types of cars in my research, one on petrol and the other on diesel, I've found out they both are inferior goods, as price rise, quantity demanded falls. They are also relative cheap cars. And when comparing the two cars to each other they are elastic ( fall in price, leads to an increase in revenue), so overall a car would be elastic?

Sorry, I just saw your definition of an inferior good there and I had to butt in. An inferior good is a good which decreases in demand when consumer income increases. You cannot determine whether a good is normal or inferior without considering YED. You have made an assumption. Therefore the person above is wrong to simply agree with a "yes".

Your last part however is correct. If it is observed that a fall in price leads to an increase in revenue, the good is indeed elastic.

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Therefore the person above is wrong to simply agree with a "yes".

he's not even taking econ (look at his sig) so we can't really rely on his opinion.

@OP, I personally think the demand for cars is price elastic...but well it could be inelastic too. say a Ferrari car's price fell by maybe $100, I don't think the demand would change that much... are you investigating a specific brand/type or just cars in general?

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Therefore the person above is wrong to simply agree with a "yes".

he's not even taking econ (look at his sig) so we can't really rely on his opinion.

@OP, I personally think the demand for cars is price elastic...but well it could be inelastic too. say a Ferrari car's price fell by maybe $100, I don't think the demand would change that much... are you investigating a specific brand/type or just cars in general?

Umm...just because you don't take a certain subject it doesn't mean their opinion is critially flawed! I think that's a bit mean. People do learn outside of school you know.

I do not think you're getting at the point, which was made by Capt'n Marth (maybe not so clearly but it was made nonetheless) a long time ago. Instead of simply analysing the PED why not ask why the PED is such for certain cars? The answer is so simple. Why would you want a car?

Reason 1: trasnport

Reason 2: luxury/status

Cars which meet the demand for Reason 1 are elastic because they can easily be substitued by public transport (e.g. buses, trams, subway) or other private transport (e.g. bike, cheaper cars, econ-cars). [bTW the cost to use a bus DOES NOT EQUAL the cost of purchasing a bus!!!]

Cars which meet the demand for Reason 2 are inelastic (maybe even proportional to price if you believe in Veble goods) simply because there is limited substitution for such satisfaction. The only thing I'd personally exchange for an Eagle Vision is probably a yacht, can yachts sail on land? No.

So with the information given: Cheap cars which run on dirty fuels......hmmmmm.......Reason 1 or Reason 2?

I think I've made my point; please don't say "I think its this...but actually its that as well", its just not helpful.

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Umm...just because you don't take a certain subject it doesn't mean their opinion is critially flawed! I think that's a bit mean. People do learn outside of school you know.

but he didn't and his opinion was...haha who cares? haters gonna hate no matter what

I do not think you're getting at the point, which was made by Capt'n Marth (maybe not so clearly but it was made nonetheless) a long time ago. Instead of simply analysing the PED why not ask why the PED is such for certain cars? The answer is so simple. Why would you want a car?

Reason 1: trasnport

Reason 2: luxury/status

Cars which meet the demand for Reason 1 are elastic because they can easily be substitued by public transport (e.g. buses, trams, subway) or other private transport (e.g. bike, cheaper cars, econ-cars). [bTW the cost to use a bus DOES NOT EQUAL the cost of purchasing a bus!!!]

Cars which meet the demand for Reason 2 are inelastic (maybe even proportional to price if you believe in Veble goods) simply because there is limited substitution for such satisfaction. The only thing I'd personally exchange for an Eagle Vision is probably a yacht, can yachts sail on land? No.

So with the information given: Cheap cars which run on dirty fuels......hmmmmm.......Reason 1 or Reason 2?

I think I've made my point; please don't say "I think its this...but actually its that as well", its just not helpful.

it's Veblen goods btw...good point, but that means you're classifying the cars into types, no? that's why I asked if OP was asking about cars in general or certain types of cars or certain brands of cars.

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Umm...just because you don't take a certain subject it doesn't mean their opinion is critially flawed! I think that's a bit mean. People do learn outside of school you know.

but he didn't and his opinion was...haha who cares? haters gonna hate no matter what

I do not think you're getting at the point, which was made by Capt'n Marth (maybe not so clearly but it was made nonetheless) a long time ago. Instead of simply analysing the PED why not ask why the PED is such for certain cars? The answer is so simple. Why would you want a car?

Reason 1: trasnport

Reason 2: luxury/status

Cars which meet the demand for Reason 1 are elastic because they can easily be substitued by public transport (e.g. buses, trams, subway) or other private transport (e.g. bike, cheaper cars, econ-cars). [bTW the cost to use a bus DOES NOT EQUAL the cost of purchasing a bus!!!]

Cars which meet the demand for Reason 2 are inelastic (maybe even proportional to price if you believe in Veble goods) simply because there is limited substitution for such satisfaction. The only thing I'd personally exchange for an Eagle Vision is probably a yacht, can yachts sail on land? No.

So with the information given: Cheap cars which run on dirty fuels......hmmmmm.......Reason 1 or Reason 2?

I think I've made my point; please don't say "I think its this...but actually its that as well", its just not helpful.

it's Veblen goods btw...good point, but that means you're classifying the cars into types, no? that's why I asked if OP was asking about cars in general or certain types of cars or certain brands of cars.

Umm are you calling me a 'hater'? Calling me a 'person who hates people who manages to say nothing in two sentences' would be more accurate; my so called 'hatred' is more directed at certain types.

OOPS! Did I miss out a 'n'...oh dear. The number of stars I saw on the screen caused me to spaz while typing. I sincerely apologise.

"There are two types of cars in my research, one on petrol and the other on diesel, I've found out they both are inferior goods, as price rise, quantity demanded falls. They are also relative cheap cars. And when comparing the two cars to each other they are elastic ( fall in price, leads to an increase in revenue), so overall a car would be elastic?"

As I've pointed out, the comment on inferior goods is wrong. But hopefully this can help you to help others who seek help; isn't it ironic how they help you to help them? Again...cheap peices of metal which run on fuel that produce great fumes of black smoke. I'm realy gonna get one of those when I go to the Oscars next year! My white tux will defintely stand out in that black air.

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Therefore the person above is wrong to simply agree with a "yes".

he's not even taking econ (look at his sig) so we can't really rely on his opinion.

@OP, I personally think the demand for cars is price elastic...but well it could be inelastic too. say a Ferrari car's price fell by maybe $100, I don't think the demand would change that much... are you investigating a specific brand/type or just cars in general?

Umm...just because you don't take a certain subject it doesn't mean their opinion is critially flawed! I think that's a bit mean. People do learn outside of school you know.

I think I've made my point; please don't say "I think its this...but actually its that as well", its just not helpful.

Why thank you Mart! And Desy if you have a beef with me..no need to publicise it.."we can''t really rely on his opinion" Really?

2 of my roommates are Eco students and they my verified answer.But what do I know? I'm just a Business Management student.

Edited by RWJ Fan

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It really depends if you mean brands of cars of cars itself... Well I guess there are other form of transport ( Taxis, Cycling, Buses).... And also it depends on the country.. If its difficult to use public transport in a country demand will tend to be inelastic. While of there's a lot of substitutes, demand will be elastic

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