Essay
What can you conclude about the price elasticity of demand in each of the following statements
a.The furnace cleaning business in this city is very competitive.I'd lose half my customers if I raised the price by as little as 10 percent."
b.My economics professor has chosen to use Mankiw's textbook for this class,so I have no choice but to buy it."
c.I spend exactly $10 on coffee every week."
d.Apple prices doubled this year since all flowers were killed in the spring frost; however,the total sales of apples are only decreased by 20 percent."
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a.Elasticity is 5 so the demand is elast...View Answer
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