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lora16 [44]
3 years ago
11

Vernon spends the following percentages of his budget on the following goods: 23 percent on good A, 11 percent on good B, 1 perc

ent 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.
Business
1 answer:
bearhunter [10]3 years ago
6 0

Answer:

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.

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3 years ago
Suppose a customer is unable to pay its account on time, so the company accepts a six-month interest-bearing note receivable to
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