In B2B markets, the demand for coffee beans is related to the demand for coffee machines. This example reflects elastic demand.
举一反三
- Ryansaysthathewouldbuyonecupofcoffeeeverydayregardlessoftheprice.Ifheistellingthetruth,Ryan’s A: demand for coffee is perfectly inelastic. B: price elasticity of demand for coffee is 1. C: income elasticity of demand for coffee is 0. D: None of the above answers is correct.
- If a product is a normal good: A: Demand is inversely related to income B: Demand is inversely related to price C: Demand is directly related to price D: Demand is inversely related to the price of substitutes
- Factor markets are different from product markets in an important way because A: equilibrium is the exception, and not the rule, in factor markets. B: the demand for a factor of production is a derived demand C: the demand for a factor of production is likely to be upward sloping, in violation of the law of demand. D: All the answers are correct.
- Factor markets are different from product markets in an important way because A: equilibrium is the exception, and not the rule, in factor markets. B: the demand for a factor of production is a derived demand C: the demand for a factor of production is likely to be upward sloping, in violation of the law of demand. D: All of the above are correct.
- Retailers buy products in the B2B market to resell to consumers. The demand for the products in B2B markets is therefore derived.