Consider the Following Pairs of Goods

question 135

Essay

Consider the following pairs of goods. For which of the two goods would you expect the demand to be more price elastic? 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:

Components of Attitudes

The three main elements that make up attitudes: cognitive (beliefs and thoughts), affective (emotions and feelings), and behavioral (actions or intentions to act).

Positive Statements

Affirmations or declarations that reflect an optimistic viewpoint or positive belief.

Attitudes

Psychological tendencies expressed by evaluating a particular entity with some degree of favor or disfavor.

Putting on a Happy Face

To outwardly display happiness or contentment, often regardless of one's true feelings.