Question: Two consumers - John and Paul - are ordering strawberries online. Before looking at the price, they each place their order. John says: I'd like
Two consumers - John and Paul - are ordering strawberries online. Before looking at the price, they each place their order. John says: "I'd like $10 worth of strawberries regardless of how many strawberries that gets me." Paul says: "I'd like 100 strawberries regardless of price. What do these two orders tell you about each consumer's price elasticity of demand?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
