Discussion 1: âElasticity.â Please respond to the following:Provide an example of a product you have recently purchased in which the price changed. Determine whether the good was an elastic or inelastic good and explain how you know.If you were to be a retailer, would you want to sell elastic or inelastic goods? State your reasons in your answer.Discussion 2: âReducing Risk and Uncertainty.â Please respond to the following:Retailers such as Neiman Marcus and REI have generous return policies. Other retailers provide price-match guarantees so if the consumer finds a lower price at another retailer, the lower price will be matched.Explain why some consumers are attracted to these retailers and why some consumers are not.Speculate what might happen to supply and demand if a significant number of retailers decided to implement the price-match guarantee.Determine how much, if any, the Internet has managed consumer uncertainty and risk.
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