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Economics Homework Three Answers - Student Eleven (view source)
Revision as of 12:30, September 28, 2009
, 12:30, September 28, 2009revised
A luxury good is something a person could live without. The price of elasticity is higher than one because it is not needed in order for a person to survive. It is a good or service that one will not pay any amount of money to have that good.
A luxury good is something a person could live without. The price of elasticity is higher than one because it is not needed in order for a person to survive. It is a good or service that one will not pay any amount of money to have that good.
:Right idea, but too sweeping in the discussion. Both necessities and luxury goods must obey the Law of Demand in all respects.
:Right idea, but too sweeping in the discussion. Both necessities and luxury goods must obey the Law of Demand in all respects. Also, there was a mistake in the question so please see the model answers.
5. A substitute for French fries would be potato chips. A complement for French fries would be ketchup.
5. A substitute for French fries would be potato chips. A complement for French fries would be ketchup.