Economics
is it correct?
Which of the following is NOTlikely to be an example of a product with an inelastic demand?
cars
eggs
cigarettes
water
I chose Water. is it correct?
When the price of a pair of shoes is $80, 10 pairs are demanded. When the price of the pair of shoes is $60, 20 pairs are demanded. Using the initial value, the price elasticity of demand is ________ starting at a price of $80 and ________ starting at a price of $60.
3; 2
4; 3/2
2; 3
3/2; 4
I chose 3;2 is it correct?
Assume Sarah is a CPA who earns $85,000 a year and her favorite entertainment magazine costs her $15 a year. For her, the price elasticity of demand for the magazine is likely to be
inelastic.
perfectly elastic.
None of these
elastic.
I chose None of these. is it correct?