Homework Answers
Answer 1)
a) False, an inferior good is not a necessity because it depends on the level of income of the consumer with negative income elasticity.
b) False, normal good is not a luxury because it depends on the level of income with positive income elasticity.
c) False, Buying more economics books with the rise in income means that the good is normal rather than luxury.
d) False, Buying less math books with rise inrthe level of income means gpod is inferior rather than giffen good.
e) True, if there are two goods if one good is normal then other good has to inferior.
f) False, if there are two goods and among that one is necessity then it is not mandatory that other good has to be necessity. It depends on the consumer budget constraint and bundle.
g) True, if there are three goods then one has to be inferior and follows the law of demand.
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Q1 For each of the following statements, state whether it is (always) true or not, and...
1. For _____ goods, income elasticity is positive. Instructions: You may select more than one answer....
1. For _____ goods, income elasticity is positive. Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. a. normal b. necessity c. luxury d. inferior 2. If a good has an income elasticity of 1.83, then it: a. probably has a lot of close substitutes available. b. is an inferior good, and a necessity. c. is a normal good, and a...
1) Choose whether this statement is true or false and explain please a. In a two-good...
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2. Esen consumes only two goods, meat and potatoes. His preferences are complete transitive, monotonic and...
2. Esen consumes only two goods, meat and potatoes. His preferences are complete transitive, monotonic and convex. When the price of meat rises, he buys less meat and less potatoes. Based on this information, we can say that a. meat is necessarily a normal good. b. meat is necessarily an inferior good. c. potatoes are necessarily a normal good. d. potatoes are necessarily an inferior good. e. None of the above.
Part I: Determine whether each of the following statements is TRUE or FALSE, and write a...
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Part I: Determine whether each of the following statements is TRUE or FALSE, and write a...
Part I: Determine whether each of the following statements is TRUE or FALSE, and write a short explanation for your answer (You are required to write a short explanation of your answer to earn the full grade for the question!) Higher levels of competition in the market structure lead to a loss of social welfare since firms are spending significant resources to compete with one another. The business cycle affects income, unemployment rates, and inflation rates. These economic environment factors...
3. Is the following statement true or false? "If consumers spend their entire income on two...
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Jan is a graduate student who spends all her income on reading Kindle books on economics...
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1. Which of the following claims is true at each point along a price-consumption curve? A) Utility is maximized but income is not all spent. B) All income is spent, but utility is not maximized. C) Utility is maximized, and all income is spent. D) The level of utility is constant. 2. Consider a graph on which one good Y is on the vertical axis and the only other good X is on the horizontal axis. On this graph the income-consumption curve...
)For each of the following statements, determine whether it is true or false? Briefly explain. (24...
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2. Esen consumes only two goods, meat and potatoes. His preferences are complete transitive, monotonic and convex. When the price of meat rises, he buys less meat and less potatoes. Based on this information, we can say that a. meat is necessarily a normal good. b. meat is necessarily an inferior good. c. potatoes are necessarily a normal good. d. potatoes are necessarily an inferior good. e. None of the above.
Part I: Determine whether each of the following statements is TRUE or FALSE, and write a short explanation for your answer (You are required to write a short explanation of your answer to earn the full grade for the question!) Higher levels of competition in the market structure lead to a loss of social welfare since firms are spending significant resources to compete with one another The business cycle affects income, unemployment rates, and inflation rates. These economic environment factors...
Part I: Determine whether each of the following statements is TRUE or FALSE, and write a short explanation for your answer (You are required to write a short explanation of your answer to earn the full grade for the question!) Higher levels of competition in the market structure lead to a loss of social welfare since firms are spending significant resources to compete with one another. The business cycle affects income, unemployment rates, and inflation rates. These economic environment factors...
3. Is the following statement true or false? "If consumers spend their entire income on two goods. Suppose that one good is an inferior good, then the other good must be a normal good." Write a brief but convincing explanation of your answer (8 points).
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Write the number of each question (9)-(14) and the answer to each. (9) List one good that is a SUBSTITUTE for going to Lehman college ? (10) If the price of a SUBSTITUTE goes DOWN quantity demanded of of the other good will: (A) rise (B) fall (C) stay the same (11) List one good or service that is a COMPLEMENT for going to Lehman College. (12) If the price of a complement goes DOWN, the quantity demanded of the...
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