Assume that a 4 percent increase in income in the economy produces an 8 percent increase in the quantity demanded of good X
6. Assume that a 4 percent increase in income in the economy produces an 8 percent increase in the quantity demanded of good X. The coefficient of income elasticity of demand is
a. - 0.5 and therefore X is an inferior good.
b. +2.0 and therefore X is an inferior good.
c. +0.5 and therefore X is a normal good
d. +2.0 and therefore X is a normal good
7. Suppose the price elasticity of demand for Reece's peanut butter cups is 1.5 and the quantity demanded changed by 15% What percent did the candy manufacturers raise the price by?
8. a) Will total revenues increase or decrease for the Reece's peanut butter cups?
b) Explain why _______
9. The price elasticity of demand for chocolate is 0.2. If the price of chocolate increases by 20%, how much will the quantity demanded for chocolate decrease?
10. If the price elasticity of demand for apples is 0.8 and the quantity demanded increases by 4%, what percent did the price of apples change by?
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Assume that a 4 percent increase in income in the economy produces an 8 percent increase in the quantity demanded of good X
Assume that a 4 percent increase in income results in a 6 percent decrease in the...
Assume that a 4 percent increase in income results in a 6 percent decrease in the quantity demanded of a good. The income elasticity of demand for the good is a. negative and therefore the good is an inferior good. b. negative and therefore the good is a normal good. c. positive and therefore the good is an inferior good. d. positive and therefore the good is a normal good.
Assume that a 3% increase in income across the economy produces a 1% decrease in the...
Assume that a 3% increase in income across the economy produces a 1% decrease in the quantity of fast food demanded. The income elasticity of demand for fast food is ____________, and therefore fast food is _______________ negative; an inferior good. negative; a normal good. positive; an inferior good. positive; a normal good
If an increase in income results in a decrease in the quantity demanded of a good then for that good, the a cross-p...
If an increase in income results in a decrease in the quantity demanded of a good then for that good, the a cross-price elasticity of demand is negative b. income elasticity of demand is positive. price elasticity of demand is elastic d income elasticity of demand is negative. 9. if the cross-price elasticity of demand for two goods is 1.25, then a the two goods are luxuries. b. the demand for one of the goods conforms to the law of...
Suppose that a 20 percent increase in the price of normal good Y causes a 10 percent decline in the quantity demanded o...
Suppose that a 20 percent increase in the price of normal good Y causes a 10 percent decline in the quantity demanded of normal good X. The coefficient of cross elasticity of demand is Multiple Choice eBook negative, and therefore these goods are substitutes. negative, and therefore these goods are complements. positive, and therefore these goods are substitutes. positive, and therefore these goods are complements.
If an 8% decrease in price leads to a 4% increase in the quantity demanded of...
If an 8% decrease in price leads to a 4% increase in the quantity demanded of the good, as a result of the price change, the total revenue for this product will: a) decrease b) increase c) not change d) double If a 12% increase in price leads to a 6% decrease in quantity demanded of the good, as a result of the price change, the total revenue for the product will: a) not change b) decrease c) increase d)...
I need help with this problem 6. Quantity supplied c Supply 2. A good will have...
I need help with this problem
6. Quantity supplied c Supply 2. A good will have more inelastic demand, the treater the availability of close substitutes b. longer the period of time. C broader the definition of the market d more it is regarded as a luxury 3. If the price elasticity of demand for a good is 2, then a percent increase in price results in a a 2 percent decrease in the quantity demanded. b. 1 percent decrease...
If the percent change in the quantity demanded for good X increases 10%, as the price...
If the percent change in the quantity demanded for good X increases 10%, as the price of good Y increases 5%, how do X and Y relate, if at all. calculate the cross price elasticity of demand Microeconomics
A 5 percent increase in income leads to a 5 percent decrease in quantity demanded for a product. This product is a(n) p...
A 5 percent increase in income leads to a 5 percent decrease in quantity demanded for a product. This product is a(n) product and demand is inferior; income inelastic normal; income inelastic inferior; unit income elastic normal; unit income elastic O O O
12. A "decrease in the quantity demanded" means that a. the demand curve has shifted to...
12. A "decrease in the quantity demanded" means that a. the demand curve has shifted to the right. b. the supply curve has shifted to the left. C. price has declined and consumers therefore want to purchase more of the good. d. price has increased and consumers therefore want to purchase less of the good. 13. Which of the following pairs of goods would be most likely to be complements in consumption? a. olive oil and vegetable oil b. peanuts...
incomeads to a percent decrease in quantity demanded for a product. This products and on income...
incomeads to a percent decrease in quantity demanded for a product. This products and on income elastic product and demand or suppose the value of the price elasticity of demand is 3. What does this mean? AUS$1 increase in price causes demanded quantity to fall by 3 units. Al percent increase in the price of the product causes demanded quantity to increase by 3 percent A3 percent increase in the price of the product es demanded quantity to decrease by...
If an increase in income results in a decrease in the quantity demanded of a good then for that good, the a cross-price elasticity of demand is negative b. income elasticity of demand is positive. price elasticity of demand is elastic d income elasticity of demand is negative. 9. if the cross-price elasticity of demand for two goods is 1.25, then a the two goods are luxuries. b. the demand for one of the goods conforms to the law of...
Suppose that a 20 percent increase in the price of normal good Y causes a 10 percent decline in the quantity demanded of normal good X. The coefficient of cross elasticity of demand is Multiple Choice eBook negative, and therefore these goods are substitutes. negative, and therefore these goods are complements. positive, and therefore these goods are substitutes. positive, and therefore these goods are complements.
I need help with this problem
6. Quantity supplied c Supply 2. A good will have more inelastic demand, the treater the availability of close substitutes b. longer the period of time. C broader the definition of the market d more it is regarded as a luxury 3. If the price elasticity of demand for a good is 2, then a percent increase in price results in a a 2 percent decrease in the quantity demanded. b. 1 percent decrease...
A 5 percent increase in income leads to a 5 percent decrease in quantity demanded for a product. This product is a(n) product and demand is inferior; income inelastic normal; income inelastic inferior; unit income elastic normal; unit income elastic O O O
12. A "decrease in the quantity demanded" means that a. the demand curve has shifted to the right. b. the supply curve has shifted to the left. C. price has declined and consumers therefore want to purchase more of the good. d. price has increased and consumers therefore want to purchase less of the good. 13. Which of the following pairs of goods would be most likely to be complements in consumption? a. olive oil and vegetable oil b. peanuts...
incomeads to a percent decrease in quantity demanded for a product. This products and on income elastic product and demand or suppose the value of the price elasticity of demand is 3. What does this mean? AUS$1 increase in price causes demanded quantity to fall by 3 units. Al percent increase in the price of the product causes demanded quantity to increase by 3 percent A3 percent increase in the price of the product es demanded quantity to decrease by...
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