Assume the demand for electricity a necessity with

Info icon This preview shows pages 16–19. Sign up to view the full content.

View Full Document Right Arrow Icon
72. Assume the demand for electricity, a necessity with few substitutes, is -0.2. If the electric company raised its rates by 10 percent, we would expect: A. a 10 percent decrease in quantity demanded. B. a 2 percent increase in quantity demanded. C. a 10 percent increase in quantity demanded. D. a 2 percent decrease in quantity demanded. E. a 5 percent decrease in quantity demanded. 73. If a 1 percent decrease in price results in less than a 1 percent increase in the quantity demanded, demand is:
Image of page 16

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
74. Barry customizes Harley-Davidson motorcycles. No two cycles are alike. He notices that very few customers even ask the price of his customized motorcycles before they decide to purchase them. Demand for his motorcycles is probably: 75. Ferrari and Lamborghini are manufacturers of very expensive automobiles. Their limited edition cars often sell for $300,000 or more. For most consumers, these are prestige products, and demand is likely to be: 76. Marketer of products and services associated with the wedding industry know that customers often do not care what the price is. They just want the wedding to be perfect. For these customers demand, is likely to be: A. cross- price
Image of page 17
elastic. B. derived demand elastic. C. price elastic. D. status quo elastic. E. price inelastic. 77. The food and beverage manager at an upscale country club once offered a two-for-one happy hour price for all alcoholic beverages, only to see a very little response to the special. For these consumers, demand for alcoholic beverages is: 78. The observation that consumers are generally more sensitive to price increases than to price decreases suggests that:
Image of page 18

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 19
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern