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Unformatted text preview: Slide 10 Price Elasticity of Demand Determinants of Price Elasticity of Demand z Substitution Possibilities z Budget Share z Time Chapter 4: Elasticity Slide 11 Price Elasticity Estimates for Selected Products Good or service Price elasticity Green peas 2.80 Restaurant meals 1.63 Automobiles 1.35 Electricity 1.20 Beer 1.19 Movies 0.87 Air travel (foreign) 0.77 Shoes 0.70 Coffee 0.25 Theater, opera 0.18 Chapter 4: Elasticity Slide 12 Price Elasticity of Demand Why is the price elasticity of demand more than 14 times larger for green peas than for theater and opera performances?...
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- Spring '08
- Price Elasticity