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S E11: Elasticity - What will you do when prices change?

Think Like An Economist

CHAPTER

Hinds Katchup

Advertising is designed to make you think that there are really no good substitutes for their product. If you fall for it, then you'll be more likely to keep buying hinds katchup as they raise the price. Necessities like this tendto a very inelastic demand. Swapping one brand of ketchup for another is very different from swapping the use of condiments as a whole to something else entirely.

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