Give short explanations of why each of the following statements is true (assume for your answer that they all are true). (Hint: your explanation should be related to elasticity). a) Computers and monitors have a cross elasticity of demand of -1. b) The government would rather put excise taxes on beer than on designer clothes. c) Cars have an income elasticity of demand of 1 while bus passes have an income elasticity of demand of -1. d) Apple MacBooks have more elastic demand than laptops as a whole do. Essay Toolbar navigation

Give short explanations of why each of the following statements is true (assume for your answer that they all are true). (Hint: your explanation should be related to elasticity). a) Computers and monitors have a cross elasticity of demand of -1. b) The government would rather put excise taxes on beer than on designer clothes. c) Cars have an income elasticity of demand of 1 while bus passes have an income elasticity of demand of -1. d) Apple MacBooks have more elastic demand than laptops as a whole do. Essay Toolbar navigation

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 11P

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