Which demand is more price elastic: The demand for all personal computers or the demand for Dell computers? Explain your answer

What will be an ideal response?

The demand for Dell computers is more elastic than the demand for all personal computers. Dell computers have very close substitutes (Gateway or Hewlett Packard computers, for example), but it is difficult to find a good substitute for personal computers as a group. Plus, anything that substitutes for personal computers also substitutes for Dell computers. So Dell computers have more very close substitutes than do personal computers as a group.

Economics

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a. True b. False Indicate whether the statement is true or false

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