Answer to Question #98522 in Microeconomics for Elaine

Question #98522
Indicate for each pair of goods which good has the more elastic price demand and why? A)automobile,gasoline B)electricity, amusement park admission
1
Expert's answer
2019-11-13T09:07:08-0500

A)automobile,gasoline - Elastic price demand ; The automobiles , gasoline are so loved that many consumers will pay a premium for such products. If the price rises for automobiles, many will continue to buy. If it was a less well-known brand like Dell computers, you would expect demand to be price elastic.


B)electricity, amusement park admission - Inelastic Price demand ; Likes of electricity have few alternatives because people with electric energy need source of power. The existence of weak substitutes as solar panels but generally the price for electricity still goes up make it very inelastic.


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS