Question
Firm: NEW ERA CAP , an American headwear company Explain how your chosen business could use the idea of elasticity to make more informed decisions.
Firm: NEW ERA CAP, an American headwear company
Explain how your chosen business could use the idea of elasticity to make more informed decisions.
Noting that the price elasticity of demand can be used to estimate the change in quantity demanded, answer the following questions:
- Does your firm sell related products for which a cross-price elasticity of demand would be useful to know?
- Do competitors change the prices of their goods, and how could our business use elasticities to determine the best response to such a price change?
What do you think the elasticities you included in your paper would be: elastic, inelastic, strongly elastic, or strongly inelastic? Why?
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Microeconomics
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
1st Edition
978-1464146978, 1464146977
