This topic contains a solution. Click here to go to the answer

Author Question: Among the following pairs, which is likely to have the greatest price elasticity of demand? Why? a. ... (Read 53 times)

craiczarry

  • Hero Member
  • *****
  • Posts: 527
Among the following pairs, which is likely to have the greatest price elasticity of demand? Why?
 a. cars or Toyotas
  b. electricity usage during a month or during a year
  c. cable television or an apartment rental

Question 2

Economic growth measured in terms of an increase in per capita real GDP is not a good measure of the distribution of income in a nation.
 a. True
  b. False
  Indicate whether the statement is true or false



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

katheyjon

  • Sr. Member
  • ****
  • Posts: 331
Answer to Question 1

a. The price elasticity of demand is likely greater for Toyotas. The more and better the available substitutes, the greater is the price elasticity of demand. There are many more close substitutes for Toyotas than there are close substitutes for cars in the marketplace.
b. The price elasticity of demand is likely greater for electricity usage over a one-year period than it is over one month's time. Over time, consumers are better able to adjust their habits and thus their energy usage.
c. The price elasticity of demand is higher for an apartment rental than for cable television because rent on an apartment comprises a much greater share of a consumer's budget.

Answer to Question 2

True




craiczarry

  • Member
  • Posts: 527
Reply 2 on: Jun 30, 2018
Gracias!


hollysheppard095

  • Member
  • Posts: 339
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Most fungi that pathogenically affect humans live in soil. If a person is not healthy, has an open wound, or is immunocompromised, a fungal infection can be very aggressive.

Did you know?

Computer programs are available that crosscheck a new drug's possible trade name with all other trade names currently available. These programs detect dangerous similarities between names and alert the manufacturer of the drug.

Did you know?

Multiple experimental evidences have confirmed that at the molecular level, cancer is caused by lesions in cellular DNA.

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

For a complete list of videos, visit our video library