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When Ms. Khadija increased the price of her products, she lost a huge number of customers. She also found out that the customers she lost went to several other competitors that she has. What can be concluded from this situation? a. The demand for Ms. Khadija’s products are perfectly elastic due to the several number of substitutes b. The demand for Ms. Khadija’s products are elastic due to the changing tastes of consumers c. The demand for Ms. Khadija’s products are elastic due to the several number of substitutes d. The demand for Ms. Khadija’s products are inelastic due to the several number of substitutes

When Ms. Khadija increased the price of her products, she lost a huge number of customers. She also found out that the customers she lost went to several other competitors that she has. What can be concluded from this situation? a. The demand for Ms. Khadija’s products are perfectly elastic due to the several number of substitutes b. The demand for Ms. Khadija’s products are elastic due to the changing tastes of consumers c. The demand for Ms. Khadija’s products are elastic due to the several number of substitutes d. The demand for Ms. Khadija’s products are inelastic due to the several number of substitutes

Principles of Microeconomics
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 7PA: Maria has decided always to spend one third of her income on clothing. a. What is her income...
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When Ms. Khadija increased the price of her products, she lost a huge number of customers. She also found out that the customers she lost went to several other competitors that she has. What can be concluded from this situation? a. The demand for Ms. Khadija’s products are perfectly elastic due to the several number of substitutes b. The demand for Ms. Khadija’s products are elastic due to the changing tastes of consumers c. The demand for Ms. Khadija’s products are elastic due to the several number of substitutes d. The demand for Ms. Khadija’s products are inelastic due to the several number of substitutes
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