question archive For each of the following pairs of goods, which good would be expected to have a more elastic demand, and why? a
For each of the following pairs of goods, which good would be expected to have a more elastic demand, and why? a
Subject:EconomicsPrice:2.88 Bought3
For each of the following pairs of goods, which good would be expected to have a more elastic demand, and why?
a. College-course textbooks versus mystery novels
b. Cold soda on a cool day versus cold soda on a hot day
c. Plane tickets for business travelers versus plane tickets for vacationers
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
a. College-course textbooks versus mystery novels
Demand for mystery novels will be more elastic than demand for college-course textbooks because as the price of mystery novels increases, consumers may shift to other substitutes available in the market but cannot have substitutes for college-course books.
b. Cold soda on a cool day versus cold soda on a hot day
Demand for cold soda on a cool day will be more elastic than the demand for cold soda on a hot day because consumers may change their preferences and shift to other drinks on a cool day; while on a hot day, they will definitely prefer cold soda to feel better.
c. Plane tickets for business travelers versus plane tickets for vacationers
Plane tickets for vacationers will be more elastic than plane tickets for business travelers because business schedules are usually fixed, and change in prices will not affect the demand for tickets; on the other hand, a person may drop the plan of vacations of prices of plane tickets rise.
