Microeconomics Elasticity Research Paper 2022

Running head: MICROECONOMICS
Microeconomics
Name of the Student
Name of the University
Course ID

MICROECONOMICS1
Table of Contents
Introduction................................................................................................................................2
Summary of chosen articles.......................................................................................................2
Analysis of the articles using economic concepts......................................................................3
Conclusion..................................................................................................................................5
References..................................................................................................................................6

MICROECONOMICS2
Introduction
Elasticity of demand is an important microeconomics concept. Elasticity measures
responsiveness of demand due to a change in factors determining demand. Price elasticity of
demand measures the proportionate change in demand following a corresponding
proportionate change in price of the particular good. If percentage in demand is less than the
percentage change in price, then demand is relatively inelastic (Kreps, 2019). When demand
changes at a proportionately higher percentage than price, then demand is considered as
relatively elastic. The paper analyzes three articles related to elasticity of demand.
Microeconomic concepts related to each of the articles are discussed along with particular
reference to the aspects.
Summary of chosen articles
For purpose of the paper three articles are selected. The first article is related to rise in
metro gas prices in Vancouver. Price of gas is expected to increases to $1.50 per liter. Gas
price now are moving around a high range of $1.43. During this time of season there is
neither a high demand nor a shortage of supply. With constraint in demand and supply price
might be moved to a high level of $1.52 (Lazatin, 2018). Some analysts have pointed out that
prices are rising mainly due to shutting down of two refineries supplying gas. Higher carbon
tax is another factor that might push gas prices high. The higher cost of gas put additional
cost burden on average family for filling their cars.
The second article is related to elasticity of Dairy demand. With a decline in demand
of dairies from government dairy in US has become more elastic in nature. This has made
prices more reactive to demand for customers. Consumption of dairy is usually relatively
inelastic in nature. That means demand for basic dairy products such as butter, milk or cheese
change a little for any given change in price. However, with passes of time the situation