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6. Making Connections (5 pts): Explain why

the demand for a brand new digital device might be
elastic or inelastic. How might that elasticity
change over time once the device is no longer brand
new? the demand for a brand new digital device
might be elastic because if the price is cheap then
people will buy it and if its expensive then people
wont buy the device. the demand might be inelastic
because people will buy it no matter what the price
is.

1 Answer

6 votes

Final answer:

The demand for a brand new digital device can be elastic or inelastic depending on price and consumer preferences. Over time, the elasticity of demand may change as newer models are released or competitors offer similar devices at lower prices.


Step-by-step explanation:

The demand for a brand new digital device can be elastic or inelastic depending on factors such as price and consumer preferences. If the device is affordable, the demand is likely to be elastic, meaning that a small change in price will have a significant impact on the quantity demanded. On the other hand, if the device is a necessity or has unique features that are not available in other devices, the demand may be inelastic, meaning that price changes will have little effect on the quantity demanded.

Over time, as the device becomes no longer brand new, the elasticity of demand may change. As newer models are released or competitors offer similar devices at lower prices, the demand for the original device may become more elastic. This is because consumers now have more options to choose from and may be more willing to switch to a different brand or model.


Learn more about Demand elasticity of brand new digital devices

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