Answer to Question #104181 in Microeconomics for Naina

Question

for each pair of commondities state which you think is the more price elastic and give you reasons perfume and salt penicillin and ice cream automobiles and automobile tires ice cream and chocolate ice cream

Answer 1

Automobiles and automobile tires seem to be more price elastic since automobiles would be somewhat elastic in the short-term and be inelastic over the long-term while pricing of tires is highly elastic in supply but inelastic in the demand for the same.