In the 1980s, automaker Porsche advertised its cars with this simple slogan: "Porsche, there is no substitute." What doe imply about the elasticity of demand for Porsches? O The reason people buy Porsches is because they are so rare. The less they produce, the more they sell. Porsches have an infinite demand. Porsches are complimentary goods with other cars. So the higher the demand for other cars, the higher the demand for Porsches will be. With no substitutes available, the demand for Porsches would likely be quite (or maybe even perfectly) inelastic.

In the 1980s, automaker Porsche advertised its cars with this simple slogan: "Porsche, there is no substitute." What doe imply about the elasticity of demand for Porsches? O The reason people buy Porsches is because they are so rare. The less they produce, the more they sell. Porsches have an infinite demand. Porsches are complimentary goods with other cars. So the higher the demand for other cars, the higher the demand for Porsches will be. With no substitutes available, the demand for Porsches would likely be quite (or maybe even perfectly) inelastic.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 7PA: Maria has decided always to spend one third of her income on clothing. a. What is her income...

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