If the price of organic beef steak, regular beef steak, and pork chops each increased by...
If the price of organic beef steak, regular beef steak, and pork chops each increased by 10%. Which of the products would you think was the most elastic. In other words, which has the most change to the quantity demanded because of the increase in price?
A: organic beef steak
B: non-organic beef steak
Homework Answers
Organic beef steak is more costly because its demand is inelastic and firms realize that they can raise price when demand for a product is inelastic. The reason why it is inelastic is because of the benefits it provides (pesticides and chemical free). In this manner, when price is increased for both of them, non-organic beef steak will experience a greater decline in the quantity demanded since its demand is most elastic of all three.
Select B
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