BUS 640 Managerial Economics week 2 discussion
Question # 00002994
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Updated on: 10/30/2013 10:38 PM Due on: 10/31/2013
Week 2 DQ1 Marginal Rate of Substitution.
What is the marginal rate of substitution (MRS) and why does it diminish as the consumer substitutes one product for another? Use examples to illustrate
Week 2 DQ2 Demand Elasticity.
Please, read the article Hainer, R. (2010), provided in the required readings section for this week. The tobacco industry is a prime example to consider when talking about price elasticity of demand. While nicotine use can be addictive for many users, it is not addictive for the so-called "social smokers". What can we say about the price elasticity of demand for nicotine products (such as cigarettes, pipes, tobacco) in the group of nicotine addicted users, versus the group of "social smokers"? Can we say whose demand is likely to be more elastic? Why?
Week 2 DQ2 Demand Elasticity.
Please, read the article Hainer, R. (2010), provided in the required readings section for this week. The tobacco industry is a prime example to consider when talking about price elasticity of demand. While nicotine use can be addictive for many users, it is not addictive for the so-called "social smokers". What can we say about the price elasticity of demand for nicotine products (such as cigarettes, pipes, tobacco) in the group of nicotine addicted users, versus the group of "social smokers"? Can we say whose demand is likely to be more elastic? Why?
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Solution: Wk 2 Ds 1 BUS 640 Managerial Economics
Solution: BUS 640 Managerial Economics week 2 discussion