Consider some determinants of the price elasticity of demand:•The availability of substitutes•The market used to measure demand•The share of budget spent on the product•The time horizon being considered A good without any close substitutes is likely to have relatively demand, because consumers cannot easily switch to a substitute good if the price of the good rises. The price elasticity of demand for a good also depends on how broadly the good is defined.Organize the goods found in the following table by indicating which is likely to have the most elastic demand, which is likely to have the least elastic demand, and which will have a demand elasticity that falls in between.CategoriesMost ElasticIn BetweenLeast ElasticBeverages Wine Merlot Price elasticity for a good also depends on the share of a consumer's budget spent on a good.Other things being equal, which of the following goods has the most elastic demand?Lightbulbs Toothbrush TV and Internet service plan The price elasticity of demand is also affected by the given time horizon.If the price of gasoline is relatively high for a long time, consumers are more likely to buy fuel-efficient cars or switch to alternatives such as public transportation. Therefore, the demand for gasoline is elastic in the short run than in the long run. Consider some determinants of the price elasticity of demand:• The availability of substitutes• The market used to measure demand• The share of budget spent on the product• The time horizon being consideredA good without any close substitutes is likely to have relativelythe price of the good rises.The price elasticity of demand for a good also depends on how broadly the good is defined.Organize the goods found in the following table by indicating which is likely to have the most elastic demand, which is likely to have the least elasticdemand, and which will have a demand elasticity that falls in between.Categories Most Elastic In Between Least ElasticBeveragesOWineMerlotdemand, because consumers cannot easily switch to a substitute good ifPrice elasticity for a good also depends on the share of a consumer's budget spent on a good.Other things being equal, which of the following goods has the most elastic demand?O LightbulbsO ToothbrushO TV and Internet service planThe price elasticity of demand is also affected by the given time horizon.If the price of gasoline is relatively high for a long time, consumers are more likely to buy fuel-efficient cars or switch to alternatives such as publictransportation. Therefore, the demand for gasoline iselastic in the short run than in the long run.

Price elasticity of demand measures the responsiveness in quantity demanded of a commodity to a…

• The availability of substitutes • The market used to measure demand BUITE Ueten The share of budget spent on the product • The time horizon being considered A good without any close substitutes is likely to have relatively the price of the good rises. The price elasticity of demand for a good also depends on how broadly the good is defined. Organize the goods found in the following table by indicating which is likely to have the most elastic demand, which is likely to have the least elastic demand, and which will have a demand elasticity that falls in between. Categories Most Elastic In Between Least Elastic Beverages Wine Merlot demand, because consumers cannot easily switch to a substitute good if Price elasticity for a good also depends on the share of a consumer's budget spent on a good. Other things being equal, which of the following goods has the most elastic demand? Lightbulbs Toothbrush O TV and Internet service plan The price elasticity of demand is also affected by the given time horizon. If the price of gasoline is relatively high for a long time, consumers are more likely to buy fuel-efficient cars or switch to alternatives such as public transportation. Therefore, the demand for gasoline is elastic in the short run than in the long run.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider some determinants of the price elasticity of demand:

•	The availability of substitutes
•	The market used to measure demand
•	The share of budget spent on the product
•	The time horizon being considered

A good without any close substitutes is likely to have relatively demand, because consumers cannot easily switch to a substitute good if the price of the good rises.

The price elasticity of demand for a good also depends on how broadly the good is defined.

Organize the goods found in the following table by indicating which is likely to have the most elastic demand, which is likely to have the least elastic demand, and which will have a demand elasticity that falls in between.

Categories	Most Elastic	In Between	Least Elastic
Beverages
Wine
Merlot

Price elasticity for a good also depends on the share of a consumer's budget spent on a good.

Other things being equal, which of the following goods has the most elastic demand?

Lightbulbs

Toothbrush

TV and Internet service plan

The price elasticity of demand is also affected by the given time horizon.

If the price of gasoline is relatively high for a long time, consumers are more likely to buy fuel-efficient cars or switch to alternatives such as public transportation. Therefore, the demand for gasoline is elastic in the short run than in the long run.

Consider some determinants of the price elasticity of demand:
• The availability of substitutes
• The market used to measure demand
• The share of budget spent on the product
• The time horizon being considered
A good without any close substitutes is likely to have relatively
the price of the good rises.
The price elasticity of demand for a good also depends on how broadly the good is defined.
Organize the goods found in the following table by indicating which is likely to have the most elastic demand, which is likely to have the least elastic
demand, and which will have a demand elasticity that falls in between.
Categories Most Elastic In Between Least Elastic
Beverages
O
Wine
Merlot
demand, because consumers cannot easily switch to a substitute good if
Price elasticity for a good also depends on the share of a consumer's budget spent on a good.
Other things being equal, which of the following goods has the most elastic demand?
O Lightbulbs
O Toothbrush
O TV and Internet service plan
The price elasticity of demand is also affected by the given time horizon.
If the price of gasoline is relatively high for a long time, consumers are more likely to buy fuel-efficient cars or switch to alternatives such as public
transportation. Therefore, the demand for gasoline is
elastic in the short run than in the long run.

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