Question

4a. In the market for hand-made guitars, when the price of guitars is $800, annual revenues are $640,000. When the price falls to $700, annual revenues decline to $630,000. Over this range of guitar prices, is the demand for hand-made guitars elastic, unit-elastic, or inelastic? Why? Explain.

4b. Why is the demand for gasoline relatively inelastic, while the demand for Exxon’s gasoline relatively elastic?

Related Questions

A craftsman who makes guitars by hand finds that when he prices his guitars at ​$1 comma 400 ​, h... How are the African guitar and a Western guitar different? 1. African guitars are acoustic,... There are many different types of guitars. Most guitars are made out of wood. They can also be built... Mr. Holloway is a craftsman who makes custom guitars by hand. His last order was for 2 guitars, and...