Activity 2(l)

Activity 2l: Determining elasticities





Low (small % of income and addictive)

High (easy to store)


Low (addictive)

High (easy to store)

Digital Movie rentals

Low (small % of income)

High (infinite as purchase doesn’t reduce the amount available for someone else)

New cars

High (large % of income)

Low (especially in 2022/23) due to lack of capacity


High (luxury)

High (easy to store once produced)


Low (necessity by law)

Will depend on the capacity of schools  but as long as there is some spare capacity it will be high

Opioid drugs

Low (addictive and may be necessary for some patients)

High (easy to store)


Low (homogenous product and necessity for many countries to generate electricity)

Low (long production periods and many coal mines may be operating at full capacity)

Pet cats

High (luxury) but in some cases they are given away for free. It will depend if they are pedigree cats

Low (if waiting for a particular type of cat)

High (if happy to purchase an abandoned cat from a shelter)

Hairdressing services

Low (necessity for most)

High (large number of hairdressers not operating at full capacity)