« previous next »

Author Question: The number of substitutes available affects the price elasticity of demand for a good. So one way to ... (Read 134 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?

The first-known contraceptive was crocodile dung, used in Egypt in 2000 BC. Condoms were also reportedly used, made of animal bladders or intestines.

Did you know?

According to animal studies, the typical American diet is damaging to the liver and may result in allergies, low energy, digestive problems, and a lack of ability to detoxify harmful substances.

Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

More than 2,500 barbiturates have been synthesized. At the height of their popularity, about 50 were marketed for human use.

How Marijuana Affects the Brain How Marijuana Affects the Brain
How alcohol affects you body How alcohol affects you body
The number of research articles published on the topic of religious practices and spirituality have ... The number of research articles published on the topic of religious practices and spirituality have ...
How to write any number in scientific notation How to write any number in scientific notation
Foods made with fat substitutes aren’t calorie free Foods made with fat substitutes aren’t calorie free
The charge for telephone calls T is partly constant and partly varies with the number N of ... The charge for telephone calls T is partly constant and partly varies with the number N of ...
Video: Virtual Tour of the Eye Animation

For a complete list of videos, visit our video library