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Unformatted text preview: substitutes. 2. What do complements refer to in economics? Give an example of two complements. 3. Define Price Elasticity of Demand. Give an example. 4. Determine if the demand for the following products is price elastic or price inelastic, and explain your answer. In your explanation, be sure to include how the necessity of a good and the availability of substitutes affect the price elasticity of demand in each of these specific cases: Hotel rooms for people planning a vacation Hotel rooms for people on business to meet an important client...
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- Spring '10