Discussion Question 11: Price Elasticity
plaaasticPrice markups:
Visit Edmunds.com (www.edmunds.com) to obtain invoice and retail price information on new and used vehicles. Choose three different makes and models of new vehicles and research their prices.
- Does the difference between the invoice and suggested retail price vary from model to model? What, in your opinion, explains the differences?
- Are certain options subject to higher markups than other options? Again, in your opinion, what explains any differences you find?
- Are vehicles an elastic or inelastic good?
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