Why do suppliers want to create more inelastic demand relationships products that they sell? a. in the

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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a. Why do suppliers want to create more inelastic demand relationships in the
products that they sell?
b. When the price of cellphone charges rises from $480 to $600 a month, the
quantity demanded decreases from 204 million to 196 million subscribers.
Calculate the price elasticity of demand for cellphone charges. Is the demand
for elastic or inelastic? Would the demand for Flow charges be more elastic or
less elastic than the demand for overall cellphone charges? Why?
Transcribed Image Text:a. Why do suppliers want to create more inelastic demand relationships in the products that they sell? b. When the price of cellphone charges rises from $480 to $600 a month, the quantity demanded decreases from 204 million to 196 million subscribers. Calculate the price elasticity of demand for cellphone charges. Is the demand for elastic or inelastic? Would the demand for Flow charges be more elastic or less elastic than the demand for overall cellphone charges? Why?
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