Asked by Michael M.
For each pair of commodities, state which you think is the more price-elastic and gave your reasons: perfume and salt; penicillin and ice cream; automobiles and automobile tires; ice cream and chocolate ice cream.
Answers
Answered by
Ms. Sue
This explanation should help you make these distinctions.
http://www.quickmba.com/econ/micro/elas/ped.shtml
http://www.quickmba.com/econ/micro/elas/ped.shtml