Answer to Question #60705 in Microeconomics for Jhoana

Question

ELASTICITY

1. Research the price elasticity of demand for a good or service on retail.and answer the following:
a. What is the good or service and its elasticity coefficient? If you are not able to find this number, take an educated guess. Explain the meaning of his number.
b. What is the main factor affecting the price elasticity of demand for your case study good or service? Explain.
CONSUMER CHOICE

2. Think of a recent purchase you made or are about to make.

Use the following 5 terms in proper context in a paragraph of no more than 150 words to explain your purchasing decision: the law of diminishing marginal utility, income effect, indifference, marginal rate of substitution, consumer optimum.

Please Underline or highlight each of the terms