Larger the number of close substitutes

Assignment Help Business Economics
Reference no: EM133082520

In general, the price elasticity of demand for a product will be greater (a) the larger the number of close substitutes, (b) the greater the share of budget an item takes, (c) the more the item is considered to be a luxury, and (d) the narrower the market is defined (for example, a specific brand name vs. an entire market). Costco (www.costco.com) posts its sales (discount) items. Select at least 5 sales items, and evaluate the price elasticity of demand for each item.

Reference no: EM133082520

Questions Cloud

How does risk aversion affect the decision to migrate : a) Describe the relationship between a risk averse person and a person with low discount rate.
Produces and sells cleaning products : You are a manager in a firm that produces and sells cleaning products.
Explain equilibrium of a firm under monopoly : Explain equilibrium of a firm under monopoly in long run Explain in detail with diagram
Tourism multiplier effect : Suggest a proposal suggesting tourism as a tool for economic growth using the 'tourism multiplier effect' concept.
Larger the number of close substitutes : In general, the price elasticity of demand for a product will be greater (a) the larger the number of close substitutes, (b) the greater the share of budget an
What is the elasticity of labor supply : What is the elasticity of labor supply for this group of workers? (please calculcate to 2 decimal places, make sure that you keep the sign correct)
What is the duration of obligation : Suppose that you will be paying £10,000 a year in tuition fees at the end of the next 2 years. Bonds currently yield 8%.
Explain the possibility of the method : Explain the possibility of the method used to calculate unemployment leading to a decrease in the unemployment rate in the last few months
Success of the customer master file project : 1. What type of conflict/s is presented in this case? Name them.

Reviews

Write a Review

Business Economics Questions & Answers

  Petroleum production as their primary economic activity

Describe at least TWO of the positives and TWO of the negatives associated with drilling in North Africa and Southwest Asia. They are relying on petroleum production as their primary economic activity.

  What is the price elasticity of supply

1. Bagani is selling oranges at 25.00 dollars for the 5,000 units available for sale. She then increased her price to 35.00 dollars and had 8,000 units availabl

  In the aggregate expenditures model

In the aggregate expenditures model, it is assumed that:

  What are the four management styles in social enterprises

What are the four management styles in social enterprises? Productive, Integrator, Administrator, Entrepreneur - Define and Explain.

  Total capital between autarky and free trade

Which Theorem accounts for the change in total capital between autarky and free trade? What does this theorem predict will happen with this change?

  Q1 your publishing house is about ready to release john

q1. your publishing house is about ready to release john grishams newest novel just in time for holiday giving. you are

  Firm increase or decrease the amount of capital used

If not, should the firm increase or decrease the amount of capital used in its production process?

  What is the firm capital-labor ratio

A firm's production function is X = 6LK. Name five input combinations that would allow the firm to produce 180 units of output.

  What is economic surplus

What is his economic surplus for each laptop? Based on economic surplus, which laptop should he buy?

  About the monetary system

Which of the following statements is not correct about the U.S. monetary system?

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Private placements versus public offerings

What are the advantages and disadvantages of private placements versus public offerings?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd