1-803-07A Lecture Notes - Lecture 13: Thinkpad, Marginal Revenue, La Malbaie
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You have two hours to answer the following questions and earn up to 100 points. Write your answers directly on this exam, and clearly justify all your answers. Unless otherwise specified, no credit will be awarded for unjustified answers. Question 1 (21 points: (7 points) at a given price, which is likely to be more elastic: the demand for the lenovo. One can expect the demand for the thinkpad t430 will be more elastic because consumers have access to more close substitutes (they can buy laptops from different brands or a different model instead). When considering the market for all laptop computers, it is difficult to find close substitutes. Substitutes exist (desktop computers, tablets, etc. ) but they require a significant adjustment on the part of consumers. Initially, a owns 7 units and b owns 3 units. The fact that a has more units than b is not what determines whether a will be the seller.
