Q: indicate whether the statements are true or false:1.The demand for luxury goods is more elastic than the demand for essential goods 2.If the increase in the price of the goods leads to the reduction of the revenue, then the demand for this product is elastic. 3.The volume of the sales of the essential goods sharply increases if their prices decrease. 4.The coefficient of price elasticity of demand is measured by dividing the magnitude of changes in the price of goods by the amount of changes in the seller's revenue. 5.Elasticity of demand for income on gold watches is high

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Answered: 1. The demand for luxury goods is more…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Q: indicate whether the statements are true or false:

1.	The demand for luxury goods is more elastic than the demand for essential goods
2.	If the increase in the price of the goods leads to the reduction of the revenue, then the demand for this product is elastic.
3.	The volume of the sales of the essential goods sharply increases if their prices decrease.
4.	The coefficient of price elasticity of demand is measured by dividing the magnitude of changes in the price of goods by the amount of changes in the seller's revenue.
5.	Elasticity of demand for income on gold watches is high

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