Table 5-1
-Refer to Table 5-1. Which of the following is consistent with the elasticities given in Table 5-1?
A)A is pens and B is pencils.
B)A is a Snickers bar and B is a Milky Way bar.
C)A is an airline ticket from Chicago to New York demanded by a vacationer and B is an airline ticket from Chicago to New York demanded by a business traveler.
D)A is a bottle of water demanded by a tourist in a desert and B is a bottle of water demanded by a tourist in a rain forest.

Question

Table 5-1 
-Refer to Table 5-1. Which of the following is consistent with the elasticities given in Table 5-1?
A)A is pens and B is pencils. 
B)A is a Snickers bar and B is a Milky Way bar. 
C)A is an airline ticket from Chicago to New York demanded by a vacationer and B is an airline ticket from Chicago to New York demanded by a business traveler. 
D)A is a bottle of water demanded by a tourist in a desert and B is a bottle of water demanded by a tourist in a rain forest.

Quizplus · Accepted Answer

The elasticities for A and B in Table 5-1 show that both goods are relatively price elastic, with A having a higher elasticity than B. This pattern is consistent with airline tickets, where vacationers are likely more price sensitive (demand for A) than business travelers (demand for B). The other options do not fit the pattern of elasticity given in the table.

Table 5-1 -Refer to Table 5-1. Which of the Following Is Consistent