A good that has a lot of substitutes, that is a necessity and is relatively inexpensive will most likely have a price elasticity of demand that is a little lower than 1 exactly 1 a little higher than 1 as high as 10

A good that has a lot of substitutes, that is a necessity and is relatively inexpensive will most likely have a price elasticity of demand that is a little lower than 1 exactly 1 a little higher than 1 as high as 10

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 22SQ

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Normal and Inferior Goods

Understanding a normal good and an inferior good is important because it tells us what will happen to demand different products during booms and recessions.

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A good that has a lot of substitutes, that is a necessity and is relatively inexpensive will most likely have a price elasticity of demand that is

	a little lower than 1
	exactly 1
	a little higher than 1
	as high as 10

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