Classify the following goods in terms of their own-price elasticity: (elastic, inelastic, unit-elastic, perfectly elastic, and perfectly inelastic)

 

(a) Emergency Air Travel = 0.1.

(b) Recreational Air Travel = 2.4.

(c) Movies = .9.

(d) Private Education = 1.

(e) Cars = 2.

(f) Honda Cars = 4.

8. Provide an example of something that would increase the (own-price) elasticity of demand for a good.

9. Provide an example of a Cross-Price Elasticity that would make goods substitutes.

Answer rating: 100% (QA)

Classifying Goods by Price Elasticity a Emergency Air Travel 01 Inelastic People needing emergency flights often have limited substitutes and will lik... View the full answer