Identify the products/services, whether their demand is elastic or inelastic, and briefly explain each demand. If
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Question:
- Identify the products/services, whether their demand is elastic or inelastic, and briefly explain each demand.
- If you are selling/providing each of these products/services, would you raise its price or lower it to increase the total revenue for each product/service? Please also briefly explain.
- The demands for these products have different income elasticity as well. Please categorize them according to income elasticity, whether it is an inferior or normal (necessity or luxury) good. Please provide a brief explanation.
Products:
- Legal service
- Fast food
- New vehicles
- Used vehicles
- Lawn-care service
- Milk (not about the brands)
- Gasoline
- Cigarettes
- Lottery tickets
Instructions:
Related Book For
Managerial Economics and Business Strategy
ISBN: 978-0071267441
7th Edition
Authors: Michael R. baye
Posted Date: