1) Consider the following pairs of goods and using the concept of elasticity, which good would you expect to have more elastic demand and why?

a. Your academic textbooks or Scientific novels

b. Paracetamol medicine or energy drinks

c. Taxicab rides during the next six months or Taxicab rides during the next five years

d. Cold drinks or water

2) Harron, a car driver, drives up to a gas station and without asking price, he asks for 20 gallons of petrol, at the time when petrol price is too high and people are using CNG gas. What is Harron driver’s price elasticity of demand? Explain.

Answer rating: 100% (QA)

1a Scientific novels are more price elastic because academic textbooks are necessary for all student... View the full answer