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Question: Delivery service. A company must decide which of two delivery services it will contract with. During a recent trial period, the company shipped numerous packages with each service and kept track of how often deliveries did not arrive on time. Here are the data:
a) Compare the two services overall percentage of late deliveries.
b) On the basis of the results in part a, the company has decided to hire Pack Rats. Do you agree that Pack Rats delivers on time more often? Why or why not? Be specific.
c) The results here are an instance of what phenomenon?
Explain what you understand by price elasticity of demand. Give examples of inelastic and elastic products or services, discussing how the concept might be used in marketing situations.
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