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Economics Homework Three Answers - Student Eleven (view source)
Revision as of 19:47, September 26, 2009
, 19:47, September 26, 2009no edit summary
3. A nearly perfectly elastic demand curve is nearly ______ in shape; a nearly perfectly inelastic demand curve is nearly ________ in shape.
3. A nearly perfectly elastic demand curve is nearly ______ in shape; a nearly perfectly inelastic demand curve is nearly ________ in shape.
A. Horizontal line
A. vertical line
B. vertical line
B. horizontal line
4. The price elasticity tells a seller whether they should raise the prices of their good. An inelastic demand is needed whether income is high or low. The price elasticity of a necessity is less than one because no matter how much you raise the price, a person will buy the good because it is needed for them to live and thrive.
4. The price elasticity tells a seller whether they should raise the prices of their good. An inelastic demand is needed whether income is high or low. The price elasticity of a necessity is less than one because no matter how much you raise the price, a person will buy the good because it is needed for them to live and thrive.