This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If the price elasticity of demand is computed for two products, and product A measures .79, and ... (Read 95 times)

Coya19@aol.com

  • Hero Member
  • *****
  • Posts: 601
on: Jun 30, 2018
If the price elasticity of demand is computed for two products, and product A measures .79, and product B measures 1.6, then:
 a. product A is more price elastic than product B.
  b. product B is more price elastic than product A.
  c. consumers are more sensitive to price changes in product A than in product B.
  d. product B is more price inelastic than product A.
  e. products A and B must be substitutes.

Question 2

The president of Tucker Motors says, Lowering the price won't sell a single additional Tucker car. The president believes that the price elasticity of demand is:
 a. perfectly elastic.
  b. perfectly inelastic.
  c. unitary elastic.
  d. elastic.
  e. inelastic.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

tanna.moeller

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

b


Coya19@aol.com

  • Hero Member
  • *****
  • Posts: 601
Reply #2 on: Jun 30, 2018
Thank you


tanna.moeller

  • Sr. Member
  • ****
  • Posts: 328
Reply #3 on: Jun 30, 2018
No problemo


« previous next »
 

Did you know?

No drugs are available to relieve parathyroid disease. Parathyroid disease is caused by a parathyroid tumor, and it needs to be removed by surgery.

Did you know?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Did you know?

Prostaglandins were first isolated from human semen in Sweden in the 1930s. They were so named because the researcher thought that they came from the prostate gland. In fact, prostaglandins exist and are synthesized in almost every cell of the body.

Rivers Are a Product of Their Watersheds Rivers Are a Product of Their Watersheds
The demand for energy is met by burning coal and other fossil fuels The demand for energy is met by burning coal and other fossil fuels
Importance of Considering Gestalt Principles in Product Design (1 of 2) Importance of Considering Gestalt Principles in Product Design (1 of 2)
Importance of Considering Gestalt Principles in Product Design Importance of Considering Gestalt Principles in Product Design
Importance of Considering Gestalt Principles in Product Design Importance of Considering Gestalt Principles in Product Design
Refer to Scenario 3.1. If the price of potato chips is $0.50 and the price of Cola is $4.00, ... Refer to Scenario 3.1. If the price of potato chips is $0.50 and the price of Cola is $4.00, ...
Video: Alzheimer's Disease

For a complete list of videos, visit our video library