Here are some leaders who donât match our ideal: 1  The teenage gang leader who has âstreet credâ, is tough and prepared to defy the law, even if it means shooting his way out of trouble. 2  Stalin, admired by some Russians who like tough leaders, even if ruthless.
When price and total revenue move in the same direction, demand is relatively inelastic. True: when price and total revenue move in the same direction, demand is relatively inelastic. Why will the price elasticity of demand will be greater when the price of a good is higher relative to a consumer's income. A higher priced good will have a higher price elasticity of demand.
Sign up to view the full version. This is the end of the preview. Sign up to access the rest of the document. Unformatted text preview: Challenges 1. Lets apply the economics of taxation to romantic relationships. (a).What does it mean to have an inelastic demand for your boyfriend or girlfriend? How about an elastic demand? GHOST ANSWER: 6 An inelastic demand means you cant live without him or her. An elastic demand means that there are good substitutes for the current boyfriend or girlfriend. (b).Sometimes relationships have taxes. Suppose that you and your boyfriend or girlfriend live one hour apart.