Question
(a) Explain how economists use the concept of elasticity to distinguish between inferior goodsand necessary goods when consumer incomes change. [8] (b) Discuss how businesses
(a)Explain how economists use the concept of elasticity to distinguish between inferior goodsand necessary goods when consumer incomes change. [8]
(b)Discuss how businesses might attempt to change the price elasticity of demand for their products and consider which approach is most likely to be successful. [12]
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Managerial Economics Theory Applications and Cases
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
8th edition
978-0393124491, 393124495, 978-0039391277, 393912779, 978-0393912777
