ECN 220 Grand Canyon Week 3 Discussions


ECN 220 Grand Canyon Week 3 Discussion 1

Jane spends all her income on hot dogs and caviar. Her demand curve for caviar is inelastic at all prices for caviar. Unfortunately, the accident at Chernobyl has caused the supply of caviar to fall and the price to rise. What has happened to Jane's consumption of hot dogs? Explain. (Note: You should assume that the accident at Chernobyl had no get more info effect on the price of hot dogs or Jane's preference for caviar.)

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ECN 220 Grand Canyon read more Week 3 Discussion 2

How does the price elasticity of demand affect a firm's pricing decisions? Give a real-life example of an actual company and a product or service that substantiates your response to this question.

ECN 220 Grand Canyon Week 3 Discussions

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