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Economics Homework Three - Model (view source)
Revision as of 02:04, September 28, 2009
, 02:04, September 28, 2009added one
1. 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.
1. 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.
:
:One example of a good that has a large price elasticity is digital music. When a person goes to purchase a song on iTunes and they find out the price for a song went up ten cents, there is a huge decrease in demand. (Leonard)
2. Explain the concept of income elasticity.
2. Explain the concept of income elasticity.