Is the demand for beer elastic or inelastic?
The demand for beer is elastic.
Beer is not a necessity good and therefore demand is highly
affected by price. A good demonstration of this is the heavy summer
price competition between manufacturers and the popularity of
It's regulated by state taxes.
Beer is elastic because it is not a necessity for survival and
because there are many substitutes for beer (ie red wine,
champagne), demand is highly affected by price changes.