Exam (elaborations)
A possible reason that the demand for petrol is inelastic is because petrol is a luxury good. households spend a small proportion of their income on petrol. a large proportion of the petrol South Africa consumes is imported. there is no close substit
- Course
- Economics IA (ECS1501)
- Institution
- University Of South Africa (Unisa)
ECS1501 ASSESSMENT 6 2024 Producers are interested in the price elasticity of the demand for their product because it indicates what will happen to their total revenue (= P x Q) when the price of the product changes. Note, you will lose 50% of the mark for this question if you choose the incorr...
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