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Demand for some goods are more price elastic than others: Discuss the price elasticity of demand of the following products: drugs to a drug addict, gasoline to a cabdriver, postage stamps, Chicken McNuggets, Coca-Cola, parking at the airport, and electricity. Discus about the kinds of adjustments that consumers can make over time if the price of a product rises sharply. Consider the role of custom, or habit in determining a good’s price elasticity of demand (to the extent that consumers are creatures of habit, they continue to purchase a good even if its price rises).

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91992483

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