On page 129 in our textbook, there is an example of "real world" elasticity that caught my eye. It explains that as Valentine's Day comes, roses become a necessity (well, a necessity to any man that doesn't want to sleep on the couch for a while). In the example it makes the point that greeting cards are more elastic than roses because roses are perishables. Nobody wants to give their significant other a bouquet of dead roses, therefore, floral shops can charge more to increase the quantity supplied on Valentine's Day. From this we can see that supply is relatively inelastic and because of that, the increase in demand causes the price to increase substantially.
So here's what I don't understand fully. I think that pumpkins would be classified as a "perishable" just like roses. Well maybe not just like roses but you know what I mean. How come on October 31st we don't see a spike in the price of pumpkins? Is it because supply outweighs demand? Are there too many pumpkin farmers relative to the amount of consumers purchasing pumpkins? It's been a while since I had to purchase a pumpkin but it seems like if my memory is right, pumpkins are more expensive a few weeks before Halloween and then the price of pumkins actually goes down as it gets closer to Halloween. Why can't roses work that same way? It would sure help my checkbook out because now days it seems like I'm spending my tax refund just to get a Valentine's gift.
Although, I may be wrong because according to this article, http://www.freshplaza.com/news_detail.asp?id=29734 it sounds like the pumpkin farmers may have caught on to what the rose farmers are up to and they are raising the price of pumpkins.