Rank the Following Products in Order of Price Elasticity of Demand

question 392

Essay

Rank the following products in order of price elasticity of demand from highest to lowest and explain: electricity, a Tesla, toothpaste.

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Definitions:

Variable Expense

A cost that varies with the level of output or sales, such as raw materials or sales commissions.

Fixed Selling and Administrative Expense

Costs that do not change with the level of production or sales, such as salaries of executive personnel and advertising expenses.

Selling and Administrative Expense Budget

A financial plan outlining the projected expenses for selling activities and general administrative functions of a business.

Variable Expense

Costs that vary directly with the level of output or sales, including materials and labor costs.