1. Complementary- "Cake pops: all the rage! Frosting and sprinkles are being sold like hot cakes!"
2. Substitute- Frozen yogurt deemed healthier than ice cream, ice cream sales are dropping below zero.
3. Elastic- Candy prices are at all time lows, kids with cavities are going to dentists who are making 100 Grand.
4. Inelastic- Electricity prices spark an outrage, more than triple from last month! Homeowners begrudgingly use appliances with a less than a bright attitude.
In these modern times, electricity is a much needed resource. Everything in a home runs on electricity. Start with a typical day: your alarm clock has batteries/power plug; you turn on the lights to see; the coffee pot is connected to a wall outlet; the TV is turned on to watch the morning news; your workplace has to be lit and heated, any technology used has a battery that needs to be charged; come home and microwave food, use the stove; wind down with some television; and don't forget the various lamps and lights that are turned on and off throughout the day.
As you can see, we couldn't function as a society without electricity. Many of us don't want to stray from our comfortable lifestyles, so we're willing to pay more. Over our course of time it has been observed that the demand for electricity has stayed pretty constant compared to the fluctuation in price.
2. Substitute- Frozen yogurt deemed healthier than ice cream, ice cream sales are dropping below zero.
3. Elastic- Candy prices are at all time lows, kids with cavities are going to dentists who are making 100 Grand.
4. Inelastic- Electricity prices spark an outrage, more than triple from last month! Homeowners begrudgingly use appliances with a less than a bright attitude.
In these modern times, electricity is a much needed resource. Everything in a home runs on electricity. Start with a typical day: your alarm clock has batteries/power plug; you turn on the lights to see; the coffee pot is connected to a wall outlet; the TV is turned on to watch the morning news; your workplace has to be lit and heated, any technology used has a battery that needs to be charged; come home and microwave food, use the stove; wind down with some television; and don't forget the various lamps and lights that are turned on and off throughout the day.
As you can see, we couldn't function as a society without electricity. Many of us don't want to stray from our comfortable lifestyles, so we're willing to pay more. Over our course of time it has been observed that the demand for electricity has stayed pretty constant compared to the fluctuation in price.
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