Explain what would happen to the price elasticity of demand for Selecta ice cream when each of the following events occur. Indicate if it will increase, decrease, or remain the same, and why. 1. Other dairy-based manufacturers, such as Alaska and Anchor, decided to make and sell ice creams. 2. Ice creams from foreign countries has been banned in the Philippine market. 3. Due to advertising, people now believe that only Selecta ice creams help the local farmers.
Explain what would happen to the price elasticity of demand for Selecta ice cream when each of the following events occur. Indicate if it will increase, decrease, or remain the same, and why. 1. Other dairy-based manufacturers, such as Alaska and Anchor, decided to make and sell ice creams. 2. Ice creams from foreign countries has been banned in the Philippine market. 3. Due to advertising, people now believe that only Selecta ice creams help the local farmers.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Explain what would happen to the
1. Other dairy-based manufacturers, such as Alaska and Anchor, decided to make and sell ice creams.
2. Ice creams from foreign countries has been banned in the Philippine market.
3. Due to advertising, people now believe that only Selecta ice creams help the local farmers.
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