Price elasticity of Demand is elastic for the auto industry. As prices rise, consumers find alternative modes of transportation.
In The Automotive Industry Is Price Elasticity Of Demand Considered Elastic Or Inelastic?
Well I think, substitutes for car is public transport for longer distances, walking, cycling, motor bikes for shorter distances. Apart from that a 10% change in car prices affects the demand of the car. Also the price change in car affects its demand as people these days don't want to spend too much on fuel and maintanenance of the car. Hence, I think price elasticity of demand in the automotive industry is elastic
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Elastic
The demand for a good is inelastic when the quantity demanded does not change with the price. Those goods and services which have no substitutes have inelastic price demand.
Hence for the automobile industry where there is no substitute for cars, the price elasticity of demand is Inelastic
Hence for the automobile industry where there is no substitute for cars, the price elasticity of demand is Inelastic
It is not inelastic, but elastic ,"in websters dict" does reflect sort of what your saying. Supply and demand. It's a total of all the worlds economics. If there is a word for what your asking I don't know it.
An auto in America is a totally luxury, not even is driving but a privelage. I agree though as America is set up it seems an auto is a necessity.
An auto in America is a totally luxury, not even is driving but a privelage. I agree though as America is set up it seems an auto is a necessity.