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Author Question: If the price elasticity of demand is computed for two products, and product A measures .79, and ... (Read 14 times)

Coya19@aol.com

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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.


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tanna.moeller

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Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

b


Coya19@aol.com

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Reply #2 on: Jun 30, 2018
Thank you


tanna.moeller

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Reply #3 on: Jun 30, 2018
No problemo


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