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Raise in market price of soda in Chicago is discussed. Will it result in an increase in revenue and reduction in consumption? The PED suggests so. A similar policy was introduced in Mexico, and the soda there had a PED of 0,6, making it inelastic. Will the same happen in Chicago? Demand, elasticity and the PED are discussed in this article.

How exactly has this affected the elasticity? You should elaborate on price and its relation to demand and the PED. I agree that the raise in price would increase revenue and reduce consumption. However you contradict your previous point by stating that soda will become inelastic. I don't agree with you because soda is not a necessity and it is not healthy so if there is a raise in price and PED which will cause demand to decrease meaning it is elastic.

In the economy we see that the Milk is a need and it will be consumed by the people, no matter what the cost is. If this scenario, was based in the city then the increase of price would not matter, as it has many substitutes such as packaged milk and that too from different companies. This makes the PED elastic. But in the village, as the access to the packaged milk is less. They need the milk and therefore making the PED inelastic.

In economy we always say food is always inelastic, diaries such as cheese, cheese, butter are considered necessity for people and the price should be inelastic with PED less than 1. As time is changing, the raise of price will cause less revenue, it's not as inelastic as it use to be. The government use to be the biggest clients and they have control over the elasticity of the product, which they aren't any more. There are also a lot more alternative to fluid milk as well. This is also relating to the FDA's view on butter, it use to be vilified and now it seem to be the best product available, people are buying butter, but as the price increase, they buy a little less. We see this change in restaurants as well, McDonald's are moving away from cheeseburger and pizza restaurant are putting less cheese on their product.

I think this shows how time also has an effect on elasticity. In the past dairy has been typically seen as an inelastic product but it is now viewed as an elastic product. There have also been growing amounts of substitutes to dairy products especially milk product substitutes.

This article looks into the reasons while dairy demand has become more elastic in recent years. In the past, demand for dairy products was fairly inelastic. However, that has changed. In the past, the US government purchased a large amount of dairy products which kept prices stable but that is no longer the case which has caused prices to destablize. Additionally, there are now many alternatives to fluid milk with more stable price. As a result, it has become the most elastic dairy product. Butter and cheese are less elastic. The article also mentions that restaurants and fast food restaurants drive the fluctuation in dairy demand.

Dairy prices have seen a drop lately because of high demand farmers increased the number of cows that produce milk, then again dairy is a primary product and as we learned this week, there is only so much a population can consume of a primary good, and too much supply with an un-proportional demand calls for a decrease in price in order to form another equilibrium.Although the PED for milk is inelastic, it's still a limited primary good and the supply of this having increased creates high PEs especially since season does not affect cows.

With the lower prices less oil production falls. The lower prices also leads to less capital into the market and smaller companies with loans will struggle to pay back due to less revenue and profit. Some may have to declare bankruptcy. It is almost impossible to increase prices, because then other firms will offer cheaper oil and win your customers. The PED of oil is close to infinity and the XED between the oil of two different companies are a very high positive value

Due to the bad weather in France, the quality of wheat used to make bread have been affected leading to an increase in the price of flour. Other factors that lead to the increase in prices include the Ukrainian crisis and the Russian ban on wheat exports. Because flour and wheat have many uses, the demand for these products will hardly be affected which makes them inelastic. Supply on the other hand will decrease because of the bad harvest faced by farmers.

Some key words "like determinants of price" of price which we learned in that week could have been used to explain why season affected the price of flour. With demand steadily increasing and supply diminishing Fonge could've talked about PED which she brought up but never used the term. In her comment she said wheat and flour being inelastic are not affected by any change in price so wheat has a low PED.

Reliance Industries Ltd. (RIL) and state-run Oil & Natural Gas Corp. (ONGC), India's biggest natural gas producers, plunged in Mumbai after India's cabinet deferred a move to increase natural gas prices by three months. Reliance dropped 3.7 percent to 1,011.90 rupees, the biggest decline since Sept.

Starbucks has raised its prices by 8%. Even though only about 20% of Starbucks consumers will be affected by these price increases they will not reduce demand. This is because Starbuck's coffee is a very popular and addictive product. A price increase barely has an effect on inelastic products like Starbucks packaged grocery coffee and K-cup single serve products.

Forbes business prediction for the prices of US steel, published September 17th, 2015. US steel market is elastic, as many alternatives are available (steel from China, and other imports), causing the author to predict that US firms will reduce prices in an attempt to increase sales (and thus revenue). Also deals with government involvement in steel market.

Investment firm, Bernstein, reaffirmed its Outperform rating on Apple, along with a price target of $135. The firm has noted the first weekend sales of the newest iPhone, which the company declared to surpass 13 million units. Its predecessor iPhone 6 managed to reach over 10 million sales volume in the opening weekend, which was a record back then.

This article talks briefly about how commodities are traded between different places. It talks about how the goods are traded for a specific price then how "many traders use commodity futures to speculate on future price movements." in which they product will be sold on the market

The head of a US pharmaceutical company has defended his company's decision to raise the price of a 62-year-old medication used by Aids patients by over 5,000%. Turing Pharmaceuticals acquired the rights to Daraprim in August. CEO Martin Shkreli has said that the company will use the money it makes from sales to research new treatments. The question here is whether it is morally defendable to increase revenue by increasing prices to an amount poor people cannot afford. He says the extra money will go to research, but is it worth making the medicine too expensive for poor people?

The price of coffee has been going up and will keep at it but this doesn't seem to affect demand as demand is still increasing. Now quality is not affected by price. These can be based on the fact that the product is addictive and not many substitutes will suffice. Some even think of it as a ritual every morning.

I agree that coffee is inelastic because it is typically contains caffeine which is an addictive drug. People are addicted to coffee and depend on it as part of their daily lives. They cannot function without it, or are at least unwilling to. Therefore, consumers will continue to purchase coffee despite rising prices. Coffee drinkers also enjoy the last of coffee and are not willing to switch to other caffeine filled drinks such as tea or soda because they are not close enough substitutes. In fact, coffee consumption has actually increased despite rising prices. Consumers will not change their tastes unless prices become drastically higher.

i agree with the point that the change in qunatity demanded is not very significant. This is due to the fact the coffee is a habit forming good and addictive to most coffee addicts. However it also depends on the proportion of income spent on the good. Coffee prices can range from being dirt cheap at hawker centres to expensive at cafes like Starbucks. Hence even if the consumer is not a coffee addict, and only a small proportion of income ( if it is 'insignificant' ) is spent on the good, then a change in price will not affect the spending behaviour ; demand is price inelasic

The biggest long-term factor in the oil price is the cost of replacing oil wells as they run out ("deplete" in industry parlance). Rising oil prices will not decrease demand , as oil is a necessity and it has a price inelastic demand.