When Ms. Khadija increased the price of her products, she lost a huge number of customers. She also found out that the customers she lost went to several other competitors that she has. What can be concluded from this situation? a. The demand for Ms. Khadija’s products are perfectly elastic due to the several number of substitutes b. The demand for Ms. Khadija’s products are elastic due to the changing tastes of consumers c. The demand for Ms. Khadija’s products are elastic due to the several number of substitutes d. The demand for Ms. Khadija’s products are inelastic due to the several number of substitutes
When Ms. Khadija increased the price of her products, she lost a huge number of customers. She also found out that the customers she lost went to several other competitors that she has. What can be concluded from this situation? a. The demand for Ms. Khadija’s products are perfectly elastic due to the several number of substitutes b. The demand for Ms. Khadija’s products are elastic due to the changing tastes of consumers c. The demand for Ms. Khadija’s products are elastic due to the several number of substitutes d. The demand for Ms. Khadija’s products are inelastic due to the several number of substitutes
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter7: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 13CQ: Suppose Erin, the owner-manager of a local hotel projects the following demand for her rooms: a....
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When Ms. Khadija increased the price of her products, she lost a huge number of customers. She also found out that the customers she lost went to several other competitors that she has. What can be concluded from this situation?
a.
The demand for Ms. Khadija’s products are perfectly elastic due to the several number of substitutes
b.
The demand for Ms. Khadija’s products are elastic due to the changing tastes of consumers
c.
The demand for Ms. Khadija’s products are elastic due to the several number of substitutes
d.
The demand for Ms. Khadija’s products are inelastic due to the several number of substitutes
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