Use an elasticity concept to explain each of the following observations. During economic booms, the number of new personal care businesses, such as gyms and tanning salons, is proportionately greater than the number of other new businesses, such as grocery stores. Cement is the primary building material in Mexico. After new technology makes cement cheaper to produce, the supply curve for the Mexican cement industry becomes relatively flatter. Some goods that were once considered luxuries, like a telephone, are now considered virtual necessities. As a result, the demand curve for telephone services has become steeper over tim
Use an elasticity concept to explain each of the following observations. During economic booms, the number of new personal care businesses, such as gyms and tanning salons, is proportionately greater than the number of other new businesses, such as grocery stores. Cement is the primary building material in Mexico. After new technology makes cement cheaper to produce, the supply curve for the Mexican cement industry becomes relatively flatter. Some goods that were once considered luxuries, like a telephone, are now considered virtual necessities. As a result, the demand curve for telephone services has become steeper over tim
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
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Use an elasticity concept to explain each of the following observations.
-
During economic booms, the number of new personal care businesses, such as gyms
and tanning salons, is proportionately greater than the number of other new
businesses, such as grocery stores.
-
Cement is the primary building material in Mexico. After new technology makes
cement cheaper to produce, the supply curve for the Mexican cement industry
becomes relatively flatter.
-
Some goods that were once considered luxuries, like a telephone, are now considered
virtual necessities. As a result, the demand curve for telephone services has become steeper over time.
-
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