Ask Question
BusinessBusiness
3 January, 23:36

Vernon spends the following percentages of his budget on the following goods: 23 percent on good A, 11 percent on good B, 1 percent on good C, and 3 percent on good D. For which good is price elasticity of demand the highest, ceteris paribus? a. good A.

b. good B.

c. good C.

d. good D.

+2
Answers (1)
  1. 4 January, 03:12
    0
    A) good A.

    Explanation:

    Good A represents the highest percentage of Vernon's budget, so naturally any price change related to good A will affect Vernon greatly and may cause him to change the quantity purchased of that good. Even the price of substitutes or complements of that good will have a large impact in Vernon's purchase decisions.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Vernon spends the following percentages of his budget on the following goods: 23 percent on good A, 11 percent on good B, 1 percent on good ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
A firm has a return on equity of 23 percent. The total asset turnover is 2.2 and the profit margin is 6 percent. The total equity is $5,600. What is the net income
Answers (1)
What is the difference between regular potato salad and Amish potato salad
Answers (1)
Adams Moving and Storage, a family-owned corporation, declared a property dividend of 1,200 shares of GE common stock that Adams had purchased in February for $39,600 as an investment.
Answers (1)
What is the estimated market value of the same building described above utilizing the direct capitalization method if the cap rate for apartments of similar quality is 7%? Use the 2nd year NOI solved for above.
Answers (1)
Agnes and dwayne married recently and have decided to wait ten years to have their first child. if, instead of saving their extra income, they use it to travel a lot during those ten years, what will happen
Answers (2)
New Questions in Business
In latvia, only one six-lane highway exists, connecting riga, its capital, with moscow. otherwise, the roads are two lanes and many are made of cobblestones or bricks.
Answers (1)
When the government injects money into the economy, consumers may have more disposable income, which may lead to higher unemployment. higher production lower production. increases in taxes.
Answers (2)
Stock prices are determined in the financial markets. Management's primary goal is to maximize the firm's stock price, so financial managers need to understand how these markets operate in order to make good decisions.?
Answers (1)
The World Trade Organization (WTO) has an important role in international trade. From the list below, select all statements about the WTO that are true. It is possible that more than one statement is true. 1.
Answers (1)
On October 1, 2019, Donna Equipment signed a one-year, 8% interest-bearing note payable for $50,000. Assuming that Donna Equipment maintains its books on a calendar year basis, how much interest expense should be reported in the 2020 income
Answers (1)
Home » Business » Vernon spends the following percentages of his budget on the following goods: 23 percent on good A, 11 percent on good B, 1 percent on good C, and 3 percent on good D. For which good is price elasticity of demand the highest, ceteris paribus? a.
Sign Up Forgot Password?