Which of the following statements is correct? Group of answer choices None of these is correct....

Which of the following statements is correct?

Group of answer choices

None of these is correct.

The demand for iPads is more elastic than the demand for tablets in general. Here, iPads is one kind of tablets.

The demand for a necessity good is more elastic than the demand for a luxury good.

The demand for cell phones is more elastic over a short period of time than over a long period of time

Expert Solution

Solution:

With iPads being a kind of tablets, both, iPads and tablets have same kind of demand elasticity. A necessity good, being necessary, is required and so even with huge price change, it's quantity demanded doesn't change much, making it inelastic. Similarly, in short run, there are not many alternatives and substitutes, so huge price change will not result in much change in quantity demanded, so in short run a good's demand is inelastic.

Thus, the correct option is (A) None of these is correct.

Rahul Sunny answered 2 years ago

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