« previous next »

Author Question: In the face of gasoline prices approaching 4.00 automobile dealerships are heavily marketing their ... (Read 35 times)

kamilo84

  • Sr. Member
  • ****
  • Posts: 495
on: Jun 29, 2018
In the face of gasoline prices approaching 4.00 automobile dealerships are heavily marketing their compact cars and hybrid vehicles.
 
  However, an interesting development is that many of these dealerships are offering their economy cars at MSRP (manufacturers suggested retail price) without offering discounts. What do you suppose these dealerships believe about the price elasticity of demand for these economy cars?

Question 2

Refer to Figure 6-1. A perfectly elastic demand curve is shown in
 
  A) Panel A. B) Panel B. C) Panel C. D) Panel D.
InMicro ¦ Hubbard, O'Brien ¦ 1st Edition
Buy Test-Bank


nixon_s

  • Sr. Member
  • ****
  • Posts: 359
Reply #1 on: Jun 29, 2018
Answer to Question 1

The dealerships may be assuming that the economy cars now have become more price inelastic in demand as consumers who are dumping their gas guzzling vehicles don't have many other choices.

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Macro of a Butterfly face Macro of a Butterfly face
A complete cranium of Au. Afarensis from Hadar, Ethiopia, shows a prognathic face and a small brainc A complete cranium of Au. Afarensis from Hadar, Ethiopia, shows a prognathic face and a small brainc
In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it. In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it.
A container with gasoline containing alcohol. Notice the separation line where the alcohol-water ... A container with gasoline containing alcohol. Notice the separation line where the alcohol-water ...
Prices in Japan before and after Opening to Trade Prices in Japan before and after Opening to Trade
Light in air is initially traveling parallel to the face AC of an equilateral triangular prism, ... Light in air is initially traveling parallel to the face AC of an equilateral triangular prism, ...
Video: Premenstrual Syndrome

For a complete list of videos, visit our video library