ZuoTi.Pro
Question

Draw an income consumption curve is the income elasticity for good y is positive but becomes...

Draw an income consumption curve is the income elasticity for good y is positive but becomes negative. The income elasticity for good x is always positive.

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

A negative income elasticity of demand shows an inferior good positive income elasticity of demand is associated with normal

0 0
Add a comment
Know the answer?
Add Answer to:
Draw an income consumption curve is the income elasticity for good y is positive but becomes...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • When the income elasticity of demand for a good is negative, one can correctly conclude that:...

    When the income elasticity of demand for a good is negative, one can correctly conclude that: total revenue will decrease when the price increases. the good is a substitute. the good is a complement. the good is a normal good. the good is an inferior good. As the price is raised along a straight-line demand curve, the demand curve becomes more elastic. True False Income elasticity of demand is expected to be _____. relatively high for necessities relatively low for...

  • Suppose the own price elasticity of demand for good X is -5, its income elasticity is...

    Suppose the own price elasticity of demand for good X is -5, its income elasticity is 1, its advertising elasticity is 3, and the cross-price elasticity of demand between it and good Y is 4. Determine how much the consumption of this good will change if. Instructions: Enter your responses as percentages. Include a minus () sign for all negative answers. a. The price of good X decreases by 5 percent. b. The price of good Yincreases by 8 percent. c. Advertising decreases by...

  • 3. Kebbie spends all her income on good X and good Y. As the price of good X increases while the price of the price of...

    3. Kebbie spends all her income on good X and good Y. As the price of good X increases while the price of the price of good Y remains fixed, Kebbie's price-consumption curve is horizontal. a) Let the price of good Y be $1 per unit and Kebbie's income be M. Draw the diagram that illustrates the situation described above. b) Is good X a complement or a substitute for good Y? Explain. c) What is Kebbie's price elasticity of...

  • Suppose the own price elasticity of demand for good X is -3, its income elasticity is...

    Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Y is -4. Determine how much the consumption of this good will change if: 9.16 points Instructions: Enter your responses as percentages. Include a minus (-) sign for all negative answers. a. The price of good X decreases by 5 percent. 15 percent b. The price of good...

  • Suppose the own price elasticity of demand for good X is -2, its income elasticity is...

    Suppose the own price elasticity of demand for good X is -2, its income elasticity is 3, its advertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is -6. Determine how much the consumption of this good will change if for the following: A) The price of good X decreases by 5 percent. B) The price of good Y increases by 10 percent. C) Advertising decreases by 2 percent. D) Income increases by 3...

  • 5. Assume an individual has preferences represented by the utility function U(x, y) = x1/2y1/3 Which...

    5. Assume an individual has preferences represented by the utility function U(x, y) = x1/2y1/3 Which of the following statements is necessarily TRUE? Assume prices and income are positive. a. The price consumption curve as the price of x changes) slopes downward. b. The income consumption curve slopes downward. c. Cross-price elasticity of demand for good x with respect to the price of y is negative. d. Price elasticity of demand for good y is negative. (See Besanko 5.6 and...

  • Optimal Consumption of good x and good y: Maximization Rule - Maximization of Utility given a...

    Optimal Consumption of good x and good y: Maximization Rule - Maximization of Utility given a Budget Constraint = Marginal Utility of good x/Price of good x = Marginal Utility of good y/Price of y Calculate Consumption Bundle using the following information: Price of Good x = $5, Price of Good y = $16 and Income = $100 / 0 Quantity Consumed Total Utility Quantity Consumed Total Utility Calculate: a.) Price Elasticity of Demand =% Change in Quantity Demanded/%Change in...

  • Suppose the own price elasticity of demand for good X is -3, its income elasticity is...

    Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Yis -4. Determine how much the consumption of this good will change if: Instructions: Enter your responses as percentages. Include a minus (-) sign for all negative answers. points a. The price of good X decreases by 5 percent. O percent eBook b. The price of good Yincreases...

  • Draw the demand curve for a good with a price elasticity of demand equal to 0....

    Draw the demand curve for a good with a price elasticity of demand equal to 0. What can you say about substitutes available to the consumer for this good?

  • b) If 2 goods, good X and good Y, draw an indifference curve such that good...

    b) If 2 goods, good X and good Y, draw an indifference curve such that good X is a normal good and good Y is an economic bad.

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT