Polar cases of elasticity perfect elasticity and perfect inelasticityand provides examples of each. Examples of elastic goods included pizza, bread, books, and pencils. Examples of inelastic goods included diamond rings and housing in prime locations. Examples of nearly perfectly inelastic goods may include electricity, water, and stadium seating on the supply side.

2. Identify one good that might be considered perfectly elastic. Then explain why this good might be considered perfectly elastic.
4. Identify one good that might be considered perfectly inelastic. Then explain why this good might be considered perfectly inelastic.
6. Finally, the text mentions that these polar cases of elasticity are somewhat unrealistic in the real world. Consider one of the goods you offered as an example of perfect elasticity or inelasticity. Is there a scenario where real-world conditions may mean they do not act like a perfectly elastic or inelastic good?
8. From the data shown in the table below about demand for smartphones, calculate the price elasticity of demand from: point B to point C, point D to point E, and point G to point H. Classify the elasticity at each point as elastic, inelastic, or unit elastic.

Points	P	Q
A	60	3,000
B	70	2,800
C	80	2,600
D	90	2,400
E	100	2,200
F	110	2,000
G	120	1,800
H	130	1,600

5. The average annual income rises from $25,000 to $38,000, and the quantity of bread consumed in a year by the average person falls from 30 loaves to 22 loaves. What is the income elasticity of bread consumption? Is bread a normal or an inferior good?

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One good that might be considered perfectly elastic is a generic commodity such as rice or wheat These goods have widely available substitutes and are ... View the full answer