Asked by De'johna Sydnor on May 12, 2024
Verified
Restaurants, personal computers, and airline travel all tend to have a demand that is ______.
A) price elastic
B) price inelastic
C) price volatile
D) price subjective
Price Elastic
The degree to which the demand for a product changes in response to a change in its price.
Price Inelastic
Characterizes a situation where the demand for a good or service does not significantly change with a change in its price.
Price Volatile
Refers to sudden and significant price changes within short periods, often seen in markets for commodities or securities.
- Understand the concept of price elasticity and inelasticity and factors influencing them.
Verified Answer
GN
Gabber NeelonMay 14, 2024
Final Answer :
A
Explanation :
Restaurants, personal computers, and airline travel have a demand that is price elastic because consumers are likely to change their purchasing behavior significantly in response to price changes. For example, if the price of airline tickets increases, people may choose alternative forms of transportation, or if the cost of dining out becomes too high, individuals might opt to cook at home instead. Similarly, significant changes in the prices of personal computers can lead consumers to delay purchases, seek alternatives, or adjust their preferences.
Learning Objectives
- Understand the concept of price elasticity and inelasticity and factors influencing them.