For luxury items absolute value of price elasticity

The absolute value of price elasticity of demand tends to be lower when: (w) the greater the number of substitutes available. (x) the more important the product is in classical budgets. (y) for necessities than for luxury items. (z) when more time is permitted to adjust to price changes.

I need a good answer on the topic of Economic problems. Please give me your suggestion for the same by using above options.

View Complete Question

Related Questions in Microeconomics

Q : Revenue added via selling an additional

The revenue added through selling an additional unit of output is: (w) demand elasticity. (x) average profit rate. (y) supply elasticity. (z) marginal revenue. How can I solve my Economics problem?

Q : Problem on Normal and Inferior Goods

Lobster is a normal good and peanut butter is a poorer good. When your income increases, you will most likely consume: (1) More of both the goods. (2) More lobster and less peanut butter. (3) More peanut butter and less lobster. (4) Less of both goods.

Q : Legal barriers to entry Patents are

Patents are illustrations of: (a) legal economies of substitution. (b) legal barriers to entry. (c) natural barriers to entry. (d) marginal diseconomies of scale. Can someone explain/help me with best solution about problem of

Q : Income floor by marginal tax rate A

A marginal tax rate of 75 percent and an income floor of ____ give in a break-even level of income of $8,000. (w) $2,000. (x) $4,000. (y) $6,000. (z) $16,000. Hello guys I want you

Q : Operation of profit maximizing

While marginal cost is positive, a profit maximizing monopolist will control where marginal revenue is: (w) positive. (x) negative. (y) zero. (z) positive, zero, or negative, depending upon elasticity of demand.

Q : Managerial economics and good business

please find the attached file (project) and qoute for it. minimus 7 pages required.

Q : Institutes a legal price floor in

Assume that recent advances within agricultural technology resulted into the U.S. wheat market being at a first equilibrium upon S0D0. Farmers complain which gluts within the wheat market have depressed their incomes, endangering the family farm.

Q : Effects of price controls for a price

The consequences of price controls would be least discernible for a price ceiling set: (1) above the price equilibrium. (2) below the price equilibrium. (3) in a region of diminishing returns. (4) unfavorable to market companies. (5)

Q : Define Invisible items Invisible items

Invisible items: All kinds of services that are rendered to or obtained from abroad are termed as invisible items. Such are invisible as these are not made up of any matter or material. The record of such items is not obtainable with the ports. Illust

Q : Illegal price collusion Illegal price

Illegal price collusion is probably when the market structure for an industry is: (1) monopolistic competition. (2) a monopoly. (3) an oligopoly. (4) pure competition. (5) contestable through exit and entry.

Discover Q & A

Leading Solution Library

Avail More Than 1436005 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1945769
Asked

3,689

Active Tutors

1436005

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment