Re: Gokhale Model Paper I

Posted by Granpa Simpson on Jun 04, 2014; 7:56pm
URL: http://discussion-forum.276.s1.nabble.com/Gokhale-Model-Paper-I-tp7591016p7591472.html

For Q8) I guess the answer will be relatively price inelastic, this is because the magnitude of both the effects will be almost equal in and thus will be near to the effect of nullifying each other, provided the good is a normal one.
Q11) is a case of price competition and the answer will be b.