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Tidy Tidy
wrote...
Posts: 4852
8 years ago
For each pair of items below determine which product would have the higher price elasticity of demand (in absolute value).
a.   Insulin for a diabetic or aspirin for someone suffering a headache.
b.   A new Whirlpool 27 cu.ft. side-by-side refrigerator or electricity to power your all-electric home.
c.   A can of Red Bull or soft drinks in general.
Textbook 
Essentials of Economics

Essentials of Economics


Edition: 4th
Authors:
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Answer rejected by topic starter
wrote...
8 years ago
a.   The demand for the hair product is more price elastic (its elasticity has a higher absolute value) than the demand for blood pressure medicine. The latter is more necessity than luxury and has virtually no substitutes. There are substitutes for the Clairol hair coloring product and it is not a necessity.
b.   The demand for a new car is more price elastic than the demand for a tank of gas for your current car. The Ford Fusion: (a) has many substitutes, including your current car and (b) will consume a relatively large portion of your budget. Gasoline for the car you own is more necessity than luxury.
c.   The demand for Seiko watches is more price elastic than demand for watches in general. Narrowly defined markets (such as the Seiko watch market) have many substitutes.
wrote...
8 years ago
No problemo Happy Dummy
wrote...
8 years ago
For each pair of items below determine which product would have the higher price elasticity of demand (in absolute value).
a.   Insulin for a diabetic or aspirin for someone suffering a headache.
b.   A new Whirlpool 27 cu.ft. side-by-side refrigerator or electricity to power your all-electric home.
c.   A can of Red Bull or soft drinks in general.

Help!!
wrote...
Educator
8 years ago
Answer is above Slight Smile
wrote...
8 years ago
NO it is not.! It is the wrong answer.
wrote...
Educator
8 years ago
NO it is not.! It is the wrong answer.

You're right. I will find the answer for you, will reply back.
Answer verified by a subject expert
bio_manbio_man
wrote...
Educator
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Posts: 33222
8 years ago
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wrote...
8 years ago
Thank you soo much!!! !
wrote...
Educator
8 years ago
You're very welcome.
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