'Microeconomics – Product & Resource Markets\r'

'It was at Menlo putting green Laboratory Complex that Thomas Edison first uncover the in dissolvedescent ignition bulb in declination 1879 (Bellis 2006). More than a light speed has passed and, in that time, his noted intent has spread all over the world, sucker great cities visible to passing planes. It has diminished from an staggering wonder to an ein truthday, commonplace thing. In a epic portion of the globe, light bulbs have become a basic necessity, placing it among results with inelastic have.\r\nWithout the near lighting, all agency of work at night would have to be severely limited. Artificial lighting also satisfies the demand for abstract concepts like the feeling of security and comfort. get for this product is inelastic because there are no substitutes for light bulbs; no other invention can efficiently produce artificial lighting. Incandescent light bulbs can be sold for less than a sawhorse a piece and requires a precise small proportion of income. C hanges in the price of artificial lighting is likely to cause only relatively small shifts in demand.\r\nIf more than a century after Edison invented incandescent lighting, a sassy invention was placed in the market- a paint product that provided light when supplied with a weak electrical current. This invigorated product presents itself as a substitute, which in turn, steals dollar votes for light bulbs. The quantity of light bulbs is sure to go down as some consumers favor the new product, forcing light bulb manufacturers to either exit the industry, subjoin prices, lower manufacturing costs, or innovate.\r\nA lot of women or so the world, even those who don’t know mood TV and the like, want a Prada bag. They can earn a price of some hundreds to thousands of dollars. The supply for these bags, however, is inelastic. horizontal if the tiniest bag were to suddenly jack up in price, the quantity of Prada bags in the market would remain the same, or even go down as Prad a lead realize that their market has shrunk considerably. A Prada bag is unique, requiring very specific materials and highly skilled labor, including that of the designer, put together in a controlled manner. Because there is only unitary fashion house for Miuccia Prada, she, as a resource, has no substitution possibility contributing to the inelasticity of supply.\r\nReference refer:\r\nBellis, M. (2006).\r\nThe inventions of Thomas Edison. Retrieved November 2, 2006, from:\r\nhttp://inventors.about.com/library/inventors/bledison.htm\r\n \r\n'