Homework Answers
10) Product A has degree of elasticity 15. This means:
A unit change in price of A results in the change in its demand by 15.
Since the elasticity is greater than 1, hence it is elastic demand.
11) This means:
A unit change in price of B results in change in its demand by0.72.
Since the degree of elasticity is less than 1, hence it is inelastic demand.
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