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0BB2&eis8N 97813370965468id-3449453418sna From Cengage Q Search th Homework (Ch

ID: 1138396 • Letter: 0

Question

0BB2&eis8N 97813370965468id-3449453418sna From Cengage Q Search th Homework (Ch 05) 1. Determinants of the price elasticity of demand Consider some determinants of the price elasticity of demand: The availability of close substitutes . Whether the good is a necessity or a luxury How broadly you define the market The time horizon being considered purchase one of the close A good with many close substitutes is likely to have rflativelydemand, since consumers can easily choose to substitutes if the price of the good rises A good's price elasticity of demand depends in part on how necessary it is relative to other goods. If the following goods are priced approximately same, which one has the least elastic demand? the O A heart valve for heart attack victims Diamond necklace The price elasticity of demand for a good also depends on how you define the good Organize the goods found in the following table by indicating which is likely to heve the most elestie demand, which is likely to have the least elastic demand, and which will have demand that falls in between Categories Most Elastic In Between Least Elastic

Explanation / Answer

ANSWER 1 : ELASTIC

ANSWER 2 : A HEART VALVE FOR HEART ATTACK VICTIMS. Since, it is inelastic demand.

ANSWER 3 : Most Elastic = Boot-cut jeans

: In between : Pants

: Least elastic : Clothing