Question

The headline reads: "Jeep prices fall by $4500!" A lot of shoppers buy a Jeep. Is a

Answer 1

Here, the Jeep is an elastic product.

Explanation:

According to the economics, a product is said to be an elastic product when the price of the products increases or decreases resulting in a drastic change in the demand of quantity of the product. While a product is said as the inelastic product when the price of the product differs or fluctuates resulting in little changes in the quantity demand of the product. Here, when the Jeep's price dropped down by $4500, the quantity and demand of the Jeep increases. Therefore, there were a lot of shoppers who bought a Jeep.