Microeconomics †Product & Resource Markets

It was at Menlo leafy vegetable Laboratory Complex that Thomas Edison first unveiled the incandescent hang bulb in declination 1879 (Bellis 2006). More than a century has passed and, in that time, his famed imposture has spread all over the world, leveling great cities visible to passing planes. It has diminished from an astonishing wonder to an e reallyday, commonplace thing. In a striking portion of the globe, light bulbs have become a basic necessity, placing it among products with inelastic hold.Without the artificial lighting, all panache 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. Demand 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 dollar a piece and requires a very small proportion of income. Changes in the price of artificial lighting is likely to cause only comparatively small shifts in demand.If more than a century after Edison invented incandescent lighting, a impertinently invention was placed in the market- a paint product that provided light when supplied with a weak electrical current. This new 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, emergence prices, lower manufacturing costs, or innovate.A lot of women around the world, even those who dont know flair TV and the like, want a Prada bag. They can fetch a price of some hundreds to thousands of dollars. The supply for these bags, however, is inelastic. all the same 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 Prada will 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 cardinal fashion house for Miuccia Prada, she, as a resource, has no substitution possibility contributing to the inelasticity of supply.Reference totalBellis, M. (2006).The inventions of Thomas Edison. Retrieved November 2, 2006, fromhttp//inventors.about.com/library/inventors/bledison.htm