The Estimated Price Elasticities of Demand for the Products Listed

question 39

Essay

The estimated price elasticities of demand for the products listed in the table as "Product A" are from Table 7-7 in the text.Indicate whether the products listed as "Product B" will have a more elastic or less elastic demand than the corresponding Product A.
$\begin{array}{|l|l|l|l|}\hline \begin{array}{ll}\text { Product A }\end{array} & \begin{array}{l}\text { Estimated } \\\text { Elasticity for } \\\text { Product A }\end{array} & \text { Product B } & \begin{array}{l}\text { Is Estimated Elasticity for } \\\text { Product B More Elastic or Less }\\\text { Elastic than for Product A? }\end{array} \\\hline \text { Beer } & -0.29 & \text { Samuel Adams } & \\&& \text { Boston Lager } & \\\hline \text { Chicken } & -0.37 & \begin{array}{l}\text { Prganically raised } \\\text { chicken }\end{array} & \\\hline \text { Cocaine } & -0.28 & \text { Fllegal narcotics } & \\\hline \text { Cigarettes } & -0.25 & \text { Marlboro Lights } & \\\hline \text { Restaurant } & & \text { Penny's Grand } & \\\text { meals } & -0.67 & \text { Slam breakfast } &\\\hline \end{array}$