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Economics Homework 3 - Model (view source)
Revision as of 02:32, March 27, 2013
, 02:32, March 27, 2013a start
1. What is a substitute for french fries, and what is a complement for them?
1. What is a substitute for french fries, and what is a complement for them?
:
:Substitutes: hash browns, fruit, baked potato, salad, etc.
:Complements: hamburger, ketchup, sauce, etc.
2. Give an example of a good that has a large price elasticity, meaning that a small decrease in price causes a big increase in demand.
2. Give an example of a good that has a large price elasticity, meaning that a small decrease in price causes a big increase in demand.
:
:Candy bars, iPhone, most electronics, etc.
3. Explain the concept of income elasticity.
3. Explain the concept of income elasticity.