40 View Rubric In chapter 6, you learned about price elasticity of demand. Consi

Question

40 View Rubric In chapter 6, you learned about price elasticity of demand. Consider the following products, and discuss which item has the largest price elasticity of demand (in terms of absolute value) Also, discuss whether the demand for Christian books is elastic or inelastic (Due: Day 4 (Thursday) by 11:59pm; word count: minimum 300 words). Please submit the essay in a word document, and I will return your assignment for not meeting this requirement. . House vs. Potato Levels of Achievement Below Criteria Superior Above average Average

Explanation / Answer

Price elasticity of demand is the response of a customer towards purchase of a good for changes in prices. A good being elastic would mean that people would consume more of quantity and inelastic means that people would react to price changes and consume the same quantity.
Elasticity depends on whether a good is luxury or a need. Luxury goods tend to be more elastic than a basic good. House being a luxury good is more elastic and hence people would respond more to purchase house for any price reduction. But potato being a basic good, people would not consume more of it for any price reduction.
Demand for Christian books is slightly elastic as people would not purchase more of books for any reduced prices.

Related Questions

Navigate

• Browse (All)
• Browse 4
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.