Price elasticity for good depend on share of consumer budget

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1. A good without any close substitutes is likely to have relatively _______?  demand, because consumers cannot easily switch to a substitute good if the price of the good rises.

2. A good’s price elasticity of demand depends in part on how necessary it is relative to other goods. If the following goods are priced approximately the same, which one has the least elastic demand?

a. Sports car

b. Amputation procedures for patients with diabetes

3. Price elasticity for a good depends on the share of a consumer's budget spent on a good. Other things being equal, which of the following goods has the most elastic demand?

a. Toothbrush

b. TV and Internet service plan

c. Light bulbs

Reference no: EM13854257

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