CX elasticity WORKSHEET

CX elasticity WORKSHEET - Problem set: Elasticity 1. The...

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Problem set: Elasticity 1. The price elasticity of demand measures (in your own words) : 2. Evaluate whether demands for the following at their current price levels are price elastic or inelastic. To do this, explain whether each of the 3 determinants of price elasticity (other than time) would tend to make demand more price elastic or inelastic. The determinants may go in different directions. Finally, may a guess at whether demand for the good is elastic or inelastic at the current price. For example , suppose the good is Fuji apples. One determinant is the degree of close substitutes. You could say that there are close substitutes, since there are several types of tart apples or other fruit that consumers like as much at similar prices. Remember that these determinants are subjective , that is, in the minds of consumers. Smart phones, for example, are not objectively a necessity, but many consumers think they are. Smart phones:
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This note was uploaded on 07/17/2011 for the course ECON 102 taught by Professor Jarv during the Summer '09 term at Rio Hondo College.

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CX elasticity WORKSHEET - Problem set: Elasticity 1. The...

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