Answer to Question #7886 in Economics of Enterprise for Christina

Question

How much will consumers spend on shoes at the price of $80 and $60? As the price drops from $80 to $60 a pair, is demand elastic or inelastic?

Answer 1

The demand for shoes is inelastic, because in is the essential product, so the
quantity bought changes less than the price. So the consumers will buy more
shoes, but less than in 80/60 = 1.33 times more.