Question 1
Assume you earn
a year and your favourite sports magazine costs you
a year. Your demand for the sports magazine is likely to be
◦ perfectly inelastic.
◦ inelastic.
◦ perfectly elastic.
◦ elastic.
Question 2
Tennis balls cost
a set and tennis rackets cost
Which of the following is TRUE?
◦ The demand for tennis balls is perfectly inelastic since they can be used only if you own a tennis racket.
◦ The price elasticity of demand must be the same for both tennis balls and tennis rackets since they are complements.
◦ The demand for tennis balls is likely to be less elastic than the demand for tennis rackets.
◦ The demand for tennis balls is likely to be more elastic than the demand for tennis rackets.
Typical Startup Cost Categories Cont.
Sterile cotton balls
Cost of Laptops
Pasta with meat balls
Lawn tennis racket
Lawn tennis racket