microeconmics homework assognment

 

In general, the price elasticity of demand for a product will be greater (a) the larger the number of close substitutes, (b) the greater the share of  budget an item takes, (c) the more the item is considered to be a luxury, and (d) the narrower the market is defined (for example, a specific brand name vs. an entire market). Costco (www.costco.com) posts its sales (discount) items. Select at least 5 sales items, and evaluate the price elasticity of demand for each item. 

 

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