Consider the following pairs of goods.For which of the two goods would you expect the demand to be more price elastic?
Why?
a.water or diamonds
b.insulin or nasal decongestant spray
c.food in general or breakfast cereal
d.gasoline over the course of a week or gasoline over the course of a year
e.personal computers or Sony personal computers

Question

Consider the following pairs of goods.For which of the two goods would you expect the demand to be more price elastic?
 Why?
a.water or diamonds
b.insulin or nasal decongestant spray
c.food in general or breakfast cereal
d.gasoline over the course of a week or gasoline over the course of a year
e.personal computers or Sony personal computers

Quizplus · Accepted Answer

The Answer of Consider the following pairs of goods.For which of the two goods would you expect the demand to be more price elastic?
 Why?
a.water or diamonds
b.insulin or nasal decongestant spray
c.food in general or breakfast cereal
d.gasoline over the course of a week or gasoline over the course of a year
e.personal computers or Sony personal computers

Consider the Following Pairs of Goods