Econ101

PGPM 26 - Section 2, Group 4- EconSelfie SECTION 2 - GROUP 4 Participants FT262009 - Pothuri Venkata Durga Sai Eswar FT262024 - M Harini FT262032 - Aakash Sunil Tripathi FT262053 - Balkaran Tiwary FT262055 - Abin John FT262074 - Vemula Sai Manvitha FT265004 - Akash Kumar Sahu Rising Cake Prices During Christmas - Inelasticity During the Christmas season, bakeries around the city experience a surge in demand for cakes, especially fruitcakes and plum cakes. This demand spike typically causes prices to increase, compared to non-seasonal months like October or February. For example, a 500g plum cake that costs ₹350 in October may be priced at ₹500 in December. Demand Shift : The festive season increases the demand for cakes, shifting the demand curve rightward (D1 to D2). Elasticity : Cakes during Christmas become price inelastic , since they’re considered essential for celebrations. People are less sensitive to the price, so sellers can raise prices without major drops in quantity sol...