Determine which types of cutomers are likely to have a more elastic demand and which types of customers are likely to have a more inelastic demand. Make sure to place token in a bin.

More Elastic More Inelastic

a. Customers who are good at shopping around

b. Customers who know what they like and just buy it

c. Customers who walk up to a rental car desk right off of the plane

d. Customers who reserve a car online weeks before a trip

e. Customers who must have the latest fashion

f. Customers who can wait to buy fashionable items

Elastic demands are,

1. Customers who know what they like and just buy it.

2. Customers home Reserve a car online weeks before a trip.

3. Customers who can wait to buy fashionable items.

Inelastic demands are,

1. Customers who are good at shopping around.

2. Customers who walk up to a rental car desk right off of the plane.

3. Customers who must have the latest fashionable items.

Explanation:

Elastic demands are demands noticed when a manufacturer decreases the selling price of a particular product by x%, the number of units demanded/sold will increase accordingly. For example, if the price of a hot selling mobile phone will drop by 10%, its demand will dramatically be increased by more than 50%. Elastic demand is when the customer will wait to buy a good till their price reaches to their own preferences.

Inelastic demands are demands noticed when the demand for a particular product won't change much if the price is increased or decreased. For example, if the tariffs of prepaid and postpaid mobile phone users are increased by 1%, number of subscribers won't decrease but remain almost the same. Inelastic demand is when the customer would buy the goods irrespective of the price.