Week 1 Discussion Feedback

Module 46 Feedback- I would find a new hairstylist if the price of a haircut increased $10. I am demonstrating price sensitivity which means that my demand is elastic. In my opinion, it is only hair, and it will grow!

Module 47 Feedback- You would need to know whether or not the good is elastic, inelastic, or unit-elastic to determine the impact on total revenue.

Module 48 Feedback- During recessions/economic downturns, luxury type items do not sell well. People reduce the amount of times they go out to eat, get massages, pedicures etc. Necessity type items usually do not suffer much such as food and toiletries. People may switch to generic brands to save money.

Module 49 Feedback- Since the supply of water is high while the price is low, we receive a large consumer surplus when we consume it. However, the supply of potable water is declining, causing price to rise and surplus to fall. Diamonds are scarce, so the price is high, but we receive just a small consumer surplus from consuming them.