INTRODUCTION TO ECONOMICS I (İKTİSADA GİRİŞ I) - (İNGİLİZCE) Dersi Elasticity, Government Policies and Market Efficiency soru detayı:

PAYLAŞ:

SORU:

Which one do you expect to have more elastic demand: the food market in general or the hamburger market in particular? Explain your reason. 


CEVAP:

Goods with close substitutes tend to have more elastic demand than the goods that don’t have close substitutes. Since the food market is defined in broad sense, it does not have close substitutes compared to the hamburger market which has many close substitutes. Thus, we expect hamburger market to have more elastic demand than the food market.