The demand for a product is likely to be more elastic:
a. the smaller the share of the total budget spent on the product.
b. when more complementary products are available.
c. in the short run than in the long run.
d. when more good substitutes for the product are available.
d
You might also like to view...
Pete is a perfectly competitive rose grower. The above table gives quantities and the price for which Pete can sell his roses
a) What is Pete's total revenue if he sells 1 dozen roses? 2 dozen roses? 3 dozen roses? 4 dozen roses? b) What is the marginal revenue of the 2nd dozen roses sold? Of the 3rd dozen? Of the 4th dozen?
When using expert opinion, consumer surveys, test marketing, and price experiments to analyze consumer behavior, managers must consider how to isolate the effect of different variables that influence demand
Indicate whether the statement is true or false