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The Complete Idiot's Guide to Economics, 2nd Edition by Tom Gorman

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What Determines Elasticity?

If you produce or sell anything, or work for an outfit that does, you should have some idea of the elasticity of demand for your product or service. When the economy takes a downturn and people cut back their spending, can they cut back on your product or service? If you work for a hospital or sell basic consumer goods, like toothpaste, you have little to worry about. People who need essential medical services aren’t worried about what it costs and people aren’t about to stop brushing their teeth—their demand is relatively inelastic.
On the other hand, if you work in a high-end retail clothing store, travel agency, or fine restaurant, you may want to keep a Plan B handy. In general—as demonstrated in the 2008-2009 ...

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