Answer:
An example of a pair of goods that perform similar tasks yet have different elasticity are regular gasoline and electric vehicles.
1. Regular Gasoline:
- Gasoline is a traditional fuel source used in internal combustion engines.
- The demand for gasoline is typically considered inelastic because it is a necessity for many individuals and industries.
- Even if the price of gasoline increases, the demand for it may not decrease significantly because people still need to fuel their vehicles for transportation and other purposes.
- As a result, the quantity demanded of gasoline does not vary greatly with price changes, indicating a lower elasticity of demand.
2. Electric Vehicles:
- Electric vehicles (EVs) are an alternative to traditional gasoline-powered vehicles.
- The demand for electric vehicles can be considered relatively elastic due to various factors.
- One factor is the availability of substitutes. If the price of electric vehicles increases significantly, consumers may choose to purchase a gasoline-powered vehicle instead.
- Another factor is the dependency on charging infrastructure. If charging stations are not widely available, consumers may be hesitant to purchase electric vehicles, leading to a more elastic demand.
- As a result, the quantity demanded of electric vehicles can vary more significantly with price changes, indicating a higher elasticity of demand.
In summary, regular gasoline and electric vehicles perform similar tasks of powering vehicles, but they have different elasticity of demand. Gasoline has a lower elasticity of demand due to its necessity and limited substitutes, while electric vehicles have a higher elasticity of demand due to the availability of substitutes and dependency on charging infrastructure.
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