[Answered] As the number of substitutes for a good increases, the absolute value of its own-price elasticity ...

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Author Question: As the number of substitutes for a good increases, the absolute value of its own-price elasticity ... (Read 94 times)

soccerdreamer_17

Hero Member
Posts: 552

on: Jul 1, 2018

As the number of substitutes for a good increases, the absolute value of its own-price elasticity
a. stays the same
b. increases
c. decreases
d. the good becomes perfectly inelastic.

Question 2

Suppose that Firm A cheats, and B does not. What is A's payoff from cheating?
a. 0
b. 50
c. -10
d. 25

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cegalasso

Sr. Member
Posts: 295

Reply #1 on: Jul 1, 2018

Answer to Question 1

b

Answer to Question 2

b

soccerdreamer_17

Hero Member
Posts: 552

Reply #2 on: Jul 1, 2018

Thank you

cegalasso

Sr. Member
Posts: 295

Reply #3 on: Jul 1, 2018

No problemo

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