Due to the many usages of plastic in today's world,
they have become such a necessary and indispensable item.
However, I didn't expect then to become price inelastic
Until I read this article ...
As its products get more durable and versatile, they've become an indispensable part of construction, consumer packaging and countless other fields.
Building material in particular is driving growth for plastic makers.
According to the American Plastics Council, 30% of plastics go into bags, bottles and food containers.
Consumer goods, such as kitchen products, toys and sports equipment account for 22% of all products. Building materials account for 18%.
The use of plastics is intensive as substitutes for natural material, such as wood, glass, paper and metal.
Plastic is already a valuable commodity.
Link
http://www.investors.com/editorial/IBDArticles.asp?artsec=23&issue=20060407
2 comments:
ermm..i think..yup its inelastic..however, i dun think the price of plastic will rise bcoz the raw material for plastic is all those chemicals.(i dun noe what chemicals)...besides,plastics can be recycled so i dun think there will be shortage of plastics or raw material for plastics...
err...
is the price of tertiary education inelastic?
although the plastic can be recycled, the cost of recycling it is very expensive..
i think the plastic price will increase.
yeah, there may not have the shortage of raw material for plastics. however, those things are very poisonous and hazardous. maybe one day government(in all countries) want transparent and healthy cleaning wastage and rubbish process in this industry, the price of plastics sure rise quickly..
Post a Comment