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Please answer and explain thoroughly. A. When the price of a good increased by 10%, the quantity demanded of it decreased by 2%. 1. Is
Please answer and explain thoroughly.
A. When the price of a good increased by 10%, the quantity demanded of it decreased by 2%. 1. Is the demand for this good elastic, unit elastic, or inelastic? 2. Are substitutes for this good easy to find or does it have poor substitutes? Is this good more likely to be a necessity or a luxury? Why? Is the good more likely to be narrowly or broadly defined? Why? 3. Calculate the price elasticity of demand for this good; explain how the total revenue from the sale of the good has changed; and explain which of the following goods this good is most likely to be; orange juice, bread, toothpaste, theatre tickets, clothing, blue jeans, PBA ticketsStep by Step Solution
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