PART A-what is to be produced (refer pg 71 of text book for explanation)
-how is it produced (refer to pg71 also)
-for whom is it produced (pg 72 of text book)
Part BClick here for Link to Wiki about Price Mechanism you lazy a**
PART A-Refer Lecture 4.
-the more availiability of substitutes, the more elastic and vice versa
-complements?? IM STUCK
Part BWhat I found :
As a whole, the mobile phone market is pretty elastic - it's not a necessity and there are already a lot of phones out there, so if prices were to go up fewer people would buy new phones and fewer people would upgrade their existing phones (the very definition of elastic).
On the other hand, for certain professions mobile phones are very necessary. On-call doctors, many upper-level businesspeople, anybody who *must* be reachable as a part of their work, they all will exhibit inelastic buying behavior. Whether the phone cost $100 or $1000, if they have to have it to do their job, they'll spend the money so they can continue to work.
Q3in progress.... loading
DO IT YOURSELF
It's quite easy.