Excise Tax Pre-Writing Assignment Product that will burden consumers (inelastic demand) Determinant Supportive Argument 1. 2....

Excise Tax Pre-Writing Assignment Product that will burden consumers (inelastic demand)
Determinant	Supportive Argument
1.
2.
3.
4.
5.

Expert Solution

The product that will burden consumers (inelastic demand)

Determinant	supportive argument
1. life saving Medicines	Medicines is a product which has inelastic demand. A patient use life saving Medicines regardless of its price. The demand for life saving Medicines is considered as most inelastic. Some very essential Medicines are very important for life. e.g A diabetes patient has no option available to purchase insulin regardless the price of.insulin.
2. petroleum Products	petroleum Products is another product which has inelastic demand. A consumer is very less responsive to change its demand as there is change in the prices of petroleum Products. petroleum Products are considered as essential product in day today life.
3. Food	Food is essential for life. The food product such as Milk, Salt, coffee is considered as products which has inelastic demand. The consumer use such product even when prices are much higher than its general level.
4. Electricity	As we all know, how important is electricity. The consumer is less responsive to change in price of electricity. The consumer has less option available even when price of electricity is very high.
5. Water	Water is another very common product which has inelastic demand. Every one need water for its day today life, so the price of Supplied Water does not effect its demand for consumers of Water. If the price of water is above its normal level even than demand for water not change.

Rahul Sunny answered 1 year ago

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