Consider the Following Pairs of Goods

question 197

Essay

Consider the following pairs of goods.In each case,which would you expect to have the more elastic demand
Why
a.water or diamonds
b.insulin or nasal decongestant spray
c.food in general or breakfast cereal
d.gasoline over the course of a week or gasoline over the course of a year
e.personal computers or IBM personal computers

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Definitions:

Daimler

Daimler AG is a global automotive company known for the production of luxury vehicles and commercial vehicles, renowned for its Mercedes-Benz brand.

Vertical Integration

A strategy where a company acquires or merges with other companies at different stages of production or distribution within the same industry.

Keiretsu

A Japanese term that describes suppliers who become part of a company coalition.

Japanese Manufacturers

Companies based in Japan known for their emphasis on quality, innovation, and efficient production techniques, often within the automobile and electronics industries.