Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Identify the products/services, whether their demand is elastic or inelastic, and briefly explain each demand. If you are selling/providing each of these products/services, would

  1. Identify the products/services, whether their demand is elastic or inelastic, and briefly explain each demand.
  2.  
  3. If you are selling/providing each of these products/services, would you raise its price or lower it to increase the total revenue for each product/service? Please also briefly explain.
  4. The demands for these products have different income elasticity as well. Please categorize them according to income elasticity, whether it is an inferior or normal (necessity or luxury) good. Please provide a brief explanation.


Products:

  1. Legal service
  2. Fast food
  3. New vehicles
  4. Used vehicles
  5. Lawn-care service
  6. Milk (not about the brands)
  7. Gasoline
  8. Cigarettes
  9. Lottery tickets

Instructions:




Step by Step Solution

There are 3 Steps involved in it

Step: 1

ProductsServices 1 Legal service Demand Elasticity Inelastic Explanation The demand for legal services is generally inelastic because it is often considered a necessity when individuals require legal ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Economics and Business Strategy

Authors: Michael R. baye

7th Edition

978-0073375960, 71267441, 73375969, 978-0071267441

More Books

Students also viewed these Economics questions

Question

What was the first language you learned to speak?

Answered: 1 week ago

Question

What makes a QR code a potential security risk

Answered: 1 week ago