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determinant of price elasticity of supply, Microeconomics
Assume there is a remote area in china with high population.The area is composed exclusively of apartments and is populated by low-income residents .The people tend to stay in that area because
(1) They cannot afford to live in other areas in China,
(2) They prefer to live with people of their own ethnic group,or
(3) There is discrimination against them in other areas.Rents paid are a very high percent of people'' income.
a. would the demand for apartments in this area be relatively inelastic or relatively elastic? state why
Posted Date: 10/9/2012 8:03:57 AM | Location : United States
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