« previous next »

Author Question: The number of substitutes available affects the price elasticity of demand for a good. So one way to ... (Read 69 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?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Did you know?

Disorders that may affect pharmacodynamics include genetic mutations, malnutrition, thyrotoxicosis, myasthenia gravis, Parkinson's disease, and certain forms of insulin-resistant diabetes mellitus.

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Model of a longitudinal study in which 983 students were surveyed in 1984 and then again in 1985, 19 Model of a longitudinal study in which 983 students were surveyed in 1984 and then again in 1985, 19
How Axis Tilt Affects the Intensity of Solar Radiation How Axis Tilt Affects the Intensity of Solar Radiation
Young adulthood brings the greatest number of role transitions and highest levels of demands than ... Young adulthood brings the greatest number of role transitions and highest levels of demands than ...
The Location and Number of Food- and Beverage-Processing Facilities The Location and Number of Food- and Beverage-Processing Facilities
A thimble of water contains 4.0 x 1021 molecules. The number of moles of H2O is: A thimble of water contains 4.0 x 1021 molecules. The number of moles of H2O is:
Your company advertises all prices on the menu board as a final price, including HST of 13%. A ... Your company advertises all prices on the menu board as a final price, including HST of 13%. A ...
Video: Hormonal regulation of pregnancy - week 1

For a complete list of videos, visit our video library