Question
A)...tennis ball buyers tend to be very sensitive to small changes in price, and they don't have a lot of brand loyalty. If Ball A
A)"...tennis ball buyers tend to be very sensitive to small changes in price, and they don't have a lot of brand loyalty. If Ball A is 50 cents cheaper than Ball B, most customers will buy Ball A."
What does this imply about the price elasticity of demand for tennis balls? Draw a graph to support answer.
B)"Given the thin margin on balls, the company could not eat the cost of the tariff or expect the retailer to do so; instead, the 25 percent tariff would be passed along to consumers." So presumably higher prices for tennis balls. Please draw a graph
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