For which of the following goods would you expect the price elasticity of demand to be the largest?

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For which of the following goods would you expect the price elasticity of demand to be the largest?

Explain.

A. Gasoline
B. ExxonMobil-brand regular gasoline
C. Petroleum Products
D. Transportation services

2007-02-28 12:14:25 · 2 answers · asked by Justin 1 in Social Science ➔ Economics

2 answers

I would say B. There are plenty of substitutes for ExxonMobil brand, so if the price of that particular brand went up then demand would fall.

2007-02-28 12:40:26 · answer #1 · answered by jenh42002 7 · 0⤊ 0⤋

D or C transports are fundamental to modern economies gas and petroleum are servants of transports I mention c due the presence of demand in many marketable industries such as bug sprays and tires and these are given demand by their use.

2007-02-28 17:18:20 · answer #2 · answered by Book of Changes 3 · 0⤊ 0⤋