« previous next »

Author Question: The number of substitutes available affects the price elasticity of demand for a good. So one way to ... (Read 90 times)

magmichele12

  • Hero Member
  • *****
  • Posts: 559
on: Jun 29, 2018
The number of substitutes available affects the price elasticity of demand for a good. So one way to know if apples and oranges are substitutes for each other is to look at the price elasticity of demand for each. Comment on this assertion.
 
  What will be an ideal response?

Question 2

Because of free riders, a private, unregulated market would not produce the efficient quantity of a public good.
 
  Indicate whether the statement is true or false


nhea

  • Sr. Member
  • ****
  • Posts: 305
Reply #1 on: Jun 29, 2018
Answer to Question 1

Their separate elasticities do not indicate whether apples and oranges are substitutes for each other. If apples and oranges are not substitutes but each had many other substitutes, then their separate price elasticities will be high. To conclude that apples and oranges are substitutes for each other, the cross elasticity of demand between them must be positive.

Answer to Question 2

TRUE


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

There are immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

Did you know?

It is difficult to obtain enough calcium without consuming milk or other dairy foods.

Did you know?

The Romans did not use numerals to indicate fractions but instead used words to indicate parts of a whole.

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Altitude affects the MAP sensor voltage. Altitude affects the MAP sensor voltage.
How to multiply a complex number by its conjugate How to multiply a complex number by its conjugate
Marginal Supply - Demand Curve Marginal Supply - Demand Curve
Atomic Number and Mass Number Atomic Number and Mass Number
Mayan Number Mayan Number
Directions: Fill in the correct number or word(s). Order: Lantus U-100 insulin 68 units subcut ... Directions: Fill in the correct number or word(s). Order: Lantus U-100 insulin 68 units subcut ...
Video: Stroke volume

For a complete list of videos, visit our video library