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Consider the following pairs of goods. For which of the two goods would you expect the demand to be more price

elastic? Why?

a.  water or speedboats

b.  blood pressure medicine or nasal decongestant spray

c.  ice cream or food in general

d.  gasoline over the course of a week or gasoline over the course of a year

e.  cars or BMWs

Top Answer

Demand is said to be price elastic if its highly responsive to... View the full answer

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