Assignment:
I am writing a paper on price elasticity. I am to select a product and state whether it has price elasticity or price inelasticity. I have selected the Infiniti M35 car. The starting price for year 2008 is $43,050, year 2007 starting price was $41,450, and year 2006 starting price was $42,700. What would be the impact of raising the price of this vehicle? What would be the impact of lowering price?
Using this information about the Infiniti M35 from above, I am to determine substitutes and compliments. I am to address these components:
a) What has happened to the price and quantity of the substitutes and complimentary goods/ services for your selected product over the last year?
b) How have price adjustments impacted the demand for the selected product? That is what happens to the substitutes or complementary goods as a result of a price change?
Could you point me to reference material also.