Answer to Question #153590 in Microeconomics for Muhammad Fahad

Question

1. For each of the following pairs of goods, which good would you expect to have more elastic demand and why? a. required textbooks or mystery novels b. Beethoven recordings or classical music recordings in general c. heating oil during the next six months or heating oil during the next five years d. root beer or water 

Answer 1

a. the demand for the required textbooks is inelastic, and for the detectives it is elastic.

 b. Beethoven's recordings have less elasticity than classical music recordings in general

 c. heating oil for the next six months has less elasticity than heating oil for the next five years

d. root beer has a higher elasticity of demand than water