Think of three goods for which the demand is inelastic with respect to price. do these goods ever go on sale? does understanding the relationship between elasticity and total revenue you understand why some goods go on sale and others don’t? share your thoughts.

1. Basic Food Ingredients (Salt) , 2. Medicines , 3. Addiction Goods (Alcohol)

Explanation:

Demand (buyers ability & willingness to buy at a price - is Elastic if it responds more to price change , is Inelastic if it responds less to price change.

Following goods have inelastic demand (which responds less to price change) because of either its 'necessity' in nature or consumer being accustomed to it.

Necessity Goods: Basic food ingredients (salt), Medicines and

Goods to which consumer is habituated/addicted (Alcohol).

Such goods Price & Total Revenue (price x quantity) are directly related [Price increase, Total Revenue increase & Price decrease, Total Revenue decrease] .

So : TR direct relationship P↓TR ↓ - makes sale i.e price reduction of these goods non beneficial by not increasing (rather decreasing) Total Revenue. Hence , such goods are rarely put on sale.

answer; i believe the correct answer is (75 years);

how does that happen,where u steel points