Demand for computers is likely to be elastic or inelastic


Just based on general information you possess, do you think the demand for computers is likely to be elastic or inelastic? How about the demand for new homes? The demand for six-packs of Seven-Up?

Suppose the local government in your area wants to increase its tax revenues. Should it tax a good with an elastic demand or one with an inelastic demand? Defend your choice. Now suppose the government wants to use a tax to discourage consumption of some good or service. Will it be more successful if the demand for that good is elastic or inelastic?

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Microeconomics: Demand for computers is likely to be elastic or inelastic
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