question archive 1) In some markets consumers may buy many different brands of a product
1) In some markets consumers may buy many different brands of a product
Subject:EconomicsPrice:3.87 Bought7
1) In some markets consumers may buy many different brands of a product. Which of the statements below best represents a situation where demand for a particular brand would be very elastic?
A) "The different brands are almost identical. I always buy the cheapest."
B) "I use so little of that product that when I do buy it, I don't pay much attention to the price."
C) "The brand I buy is so superior to other available brands that I hardly consider the others."
D) "pinch pennies in buying other products, but like most people I feel I owe it to myself to get the best brand of this product."
2) Karen can make 2 jackets or 11 ties in one day working at the clothing factory. Joe can make 7 jackets or 35 ties in one day working at the clothing factory. What is Karen's opportunity cost of producing 1 jacket? Round your answer to one decimal place. Be sure to enter the correct units for what they are giving up.
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Answer:
1.
Options (B), (C), (D) are worried about the brand or they are not worried about the price as a result of which, it can be mentioned that , the demand would be relative inelastic as the quantity demanded might not change with price but opiton (A) says that he would always by the cheapest as a result of which is the most price conscious as a result of which it can be mentioned with even a bit decrease in price would make him buy more proportionately as a result of which it is more elastic
Therefore (A) is the answer
2.
Based on given informations,
If Karen make 2 jackets then he loose 11 ties
Now, for making 1 jacket Karen loose = 11/2 = 5.5 ties.
Therefore, the opportunity cost of Karen for making 1 jacket is 5.5 ties.
