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Welcome to the Q&A for ECN/APEC 2010, where you can ask questions and receive answers from your fellow students, the TA, and your professor.

Please only ask questions about the material for the course. Try to create discussions about the material we see in class, instead of just thinking of economics in general (this is an introduction to microeconomics class, not a policy or government class).

For questions and discussions about course organization or other course related topics, come see us after class or during office hours.

Feel free to discuss quiz questions on the Q&A, but do not provide direct answers to quiz questions before the quiz's due date.

Can elasticity predict where you should invest in the stock market?

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Can elasticity predict where you should invest in the stock market? For example if I was looking at the elasticity of a product could I determine whether or not it would be a stable investment?
asked Feb 12 by canvas-30ee4c0a7a712 (580 points)
The elasticities we have learned about in class are the price elasticity of demand and the price elasticity of supply. Both show how either quantity demanded or quantity supplied react to changes in price. Do you think this is useful information before you buy a stock? We will not apply it to the stock market, but maybe there is some other type of "elasticity" that can be useful, I do not know. This really is not applicable to this class, we do not talk about making investments or how stocks function.
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