Business Questions and Answers

Start Your Free Trial

Pick two products and explain which one will have a greater price elasticity of demand and why this will be the case.  

Expert Answers info

pohnpei397 eNotes educator | Certified Educator

calendarEducator since 2009

write35,413 answers

starTop subjects are History, Literature, and Social Sciences

Let us look at the price elasticity of demand for vacations in general and for vacations in Hawaii in particular.  If the price of both go up by the same percentage, it is likely that the quantity demanded of vacations to Hawaii will go down more than for vacations in general.  In other words, the vacations in Hawaii have a greater price elasticity of demand.

The...

(The entire section contains 204 words.)

Unlock This Answer Now


check Approved by eNotes Editorial