Consider the following pairs of goods. For which of the two goods would you expect the...

Question

Question

Consider the following pairs of goods. For which of the two goods would you expect the...

Consider the following pairs of goods. For which of the two goods would you expect the demand to be more price elastic? Why? (In order to receive full credit for your answer, be sure to provide explanation for your answer.)

(a) water or diamonds

(b) insulin or nasal decongestant spray

(c) food in general or breakfast cereal

(d) gasoline over the course of a week or gasoline over the course of a year

(e) personal computers or IBM personal computers

business economics

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Add a comment

Answer 2

Similar Homework Help Questions

2. (20 points) For each of the following pairs of goods, identify which one you would...

2. (20 points) For each of the following pairs of goods, identify which one you would expect to have more own-price elastic demand. Please explain your reasoning. (a) (5 points) Computers (generally) vs. Apple MacBook Pro laptops. (b) (5 points) Stereo headphones (generally) vs. hearing aids. For each of the following goods, identify whether you would expect demand to be more (own- price) elastic in the short run or the long run. As above, please briefly explain your reasoning. (c)...
5. For each of the following pairs, which of the two goods is more likely to...

5. For each of the following pairs, which of the two goods is more likely to be elastically demanded and why? a. Demand for tangerines vs. demand for fruit b. Demand for beef next month vs. demand for beef over the next decade c. Demand for Exxon gasoline at the corner of 7th and Grand vs. demand for gasoline in the entire city d. Demand for insulin vs. demand for vitamins
For the following pairs of goods, would you expect the cross-price elasticity of demand to be...

For the following pairs of goods, would you expect the cross-price elasticity of demand to be positive, negative, or zero? Briefly explain. a) Peanut Butter and Jelly b) Shoes and sandals c) Orange Juice and Apple Juice d) Televisions and DVD players e) T-shirts and gasoline

5. In each of the following pairs of goods, identify the one which you would expect...

5. In each of the following pairs of goods, identify the one which you would expect to have a more elastic price elas- ticity of demand. Briefly explain. a) Bread vs. fresh pineapples b) Airline travel in the long-run versus the short-run. c) Massages vs. prescription drugs. d) Sugar vs. restaurant meals. er
7. For the following pairs of goods, would you expect the cross-price elasticity of demand to...

7. For the following pairs of goods, would you expect the cross-price elasticity of demand to be positive, negative, or zero? Briefly explain. a) Peanut Butter and Jelly b) Shoes and sandals c) Orange Juice and Apple Juice d) Televisions and DVD players e) T-shirts and gasoline
For each of the following product pairs, what would you guess about their cross price elasticity...

For each of the following product pairs, what would you guess about their cross price elasticity of demand. Would you expect it to be positive or negative? Would you expect it to be a large or small number? Explain your answer? a) dress pants and belts b) gasoline and SUVs c) bread and bagels d) butter and margarine

Bonus (5 points) True or False: Consider a monopolist which produces two interrelated goods A and B with QA(PA, PB) and QB(PA, Pa) where Q is the demand and P is the price. If dA-0, the firm could ch...

Bonus (5 points) True or False: Consider a monopolist which produces two interrelated goods A and B with QA(PA, PB) and QB(PA, Pa) where Q is the demand and P is the price. If dA-0, the firm could charge the same price as a monopolist in market A which produces only good A. Explain your answer. (Answers without correct explanation will receive 0 credit.) Bonus (5 points) True or False: Consider a monopolist which produces two interrelated goods A and...
01/ (Total marks: 30 marks) Consider the market for Pear juice in a city. What will...

01/ (Total marks: 30 marks) Consider the market for Pear juice in a city. What will happen to the equilibrium price and quantity of Pear juice in each of the following events? Assume buyers will purchase orange juice as a replacement of pear juice. You should state whether demand or supply (or both) have been moving along the same curve or shifted and in which direction. (In each case assume ceteris paribus). You have to use a demand-supply diagram in...
Which of the following goods/services are example of bundling? What would be the answers to question...

Which of the following goods/services are example of bundling? What would be the answers to question 1,7, and 2 if you could provide explanations to how you got to your answers to have a better understanding Thank you. QUESTION 1 When buying a car, salespeople try to learn a lot about you: what do you for a living, why you want a car, etc. They are not simply being friendly, they are setting up for price discrimination. How? So they...

1. Which step of the personal selling process did Sam engage in when, early in his...

1. Which step of the personal selling process did Sam engage in when, early in his career, he made in-person cold calls with professors on various campuses? Sales presentation Preapproach Closing the sale Generating and qualifying leads Follow-up 2. Why is Sam most likely to have a long-term relationship with his customers? He lets professors initiate sales visits. He guarantees the cheapest prices. He earns customers’ trust and loyalty through one-on-one interactions. He closes sales as soon as possible. His...

Consider the following pairs of goods. For which of the two goods would you expect the...

Homework Answers

Add Answer to:
Consider the following pairs of goods. For which of the two goods would you expect the...

Post as a guest

Earn Coins

2. (20 points) For each of the following pairs of goods, identify which one you would...

5. For each of the following pairs, which of the two goods is more likely to...

For the following pairs of goods, would you expect the cross-price elasticity of demand to be...

5. In each of the following pairs of goods, identify the one which you would expect...

7. For the following pairs of goods, would you expect the cross-price elasticity of demand to...

For each of the following product pairs, what would you guess about their cross price elasticity...

Bonus (5 points) True or False: Consider a monopolist which produces two interrelated goods A and B with QA(PA, PB) and QB(PA, Pa) where Q is the demand and P is the price. If dA-0, the firm could ch...

01/ (Total marks: 30 marks) Consider the market for Pear juice in a city. What will...

Which of the following goods/services are example of bundling? What would be the answers to question...

1. Which step of the personal selling process did Sam engage in when, early in his...

Consider the following pairs of goods. For which of the two goods would you expect the...

Homework Answers

Add Answer to: Consider the following pairs of goods. For which of the two goods would you expect the...

Post as a guest

Earn Coins

Add Answer to:
Consider the following pairs of goods. For which of the two goods would you expect the...