Essay
Consider the following pairs of goods. For which of the two goods would you expect the demand to be more price elastic? Why?
a. Water or diamonds.
b. Insulin or nasal decongestant spray.
c. Food in general or breakfast cereal.
d. Petrol over the course of a week or petrol over the course of a year.
Correct Answer:
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a. Diamonds are luxuries, and water is a...View Answer
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