Homework Answers
Income elasticity of demand measures the responsiveness of the quantity demanded for a good to change in income.
When the income elasticity of demand is less than 1, it is a necessary good. When the income elasticity of demand is more than 1, it is considered to be a luxury good.
Therefore, the correct option is 2nd, that is, coffee and sailboats as here coffee is a necessary good where as sailboats are luxury.
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It is likely that has an income elasticity less than 1, and, have an income elasticity...
26)What pair of goods is likely to have the largest cross-price elasticity in absolute value? Multiple...
26)What pair of goods is likely to have the largest cross-price elasticity in absolute value? Multiple Choice a)Ramen noodles and a Rolex watch b)Cross-price elasticity is always negative, and simply reported in absolute value. c)Butter and margarine d)Peanut butter and jelly 27)If the price of butter increases 5 percent and the amount of margarine purchased increases 25 percent, then the cross-price elasticity of these goods is: Multiple Choice a)0.2. b)- 0.2. c)5. d)- 5. 28)The determinants of price elasticity of...
If the coffee is the premium coffee, isn't it likely to have positive income elasticity, whereas...
If the coffee is the premium coffee, isn't it likely to have positive income elasticity, whereas its inferior competitors are likely to have negative?
The income elasticity of demand for foreign travel A. is likely to be larger than the...
The income elasticity of demand for foreign travel A. is likely to be larger than the income elasticity of demand for food. B. cannot be compared to the income elasticity of demand for food. C. is likely to be inelastic. D. is likely to be smaller than the income elasticity of demand for food. E. is likely to be negative.
Multiple Choice The elasticity of demand for a product is likely to be greater ________. A....
Multiple Choice The elasticity of demand for a product is likely to be greater ________. A. if the product is a luxury rather than an absolute necessity B. when the proportion of one’s income spent on the product is smaller C. if the product is an imported good rather than a domestically produced good D. when the number of substitute products available is smaller
income elasticity of demand for a normal good is always less than one equal to zero...
income elasticity of demand for a normal good is always less than one equal to zero less than zero greater than zero
Suppose that the income elasticity of demand for good X is positive but less than 1. Other things being equal, which of...
Suppose that the income elasticity of demand for good X is positive but less than 1. Other things being equal, which of the following statements is incorrect? O A. Good X is a normal good. OB. The quantity demanded of good X decreases as a consumer's income declines. OC. A consumer buys more X as income rises, but the share of income spent on good X falls. OD. A consumer buys more X as income rises and the share of...
According to this diagram, the income elasticity of demand for salmon is a) less than 0.5...
According to this diagram, the income elasticity of demand for
salmon is
a) less than 0.5
b) equal to 0.5
c) greater than 0.5
d) can't say; insufficient information
$36,000 $20,000 12 16 Qsalmon
Which one of the following forms is used when companies have filed with the SEC for less than 36 months but are not lar...
Which one of the following forms is used when companies have filed with the SEC for less than 36 months but are not large enough to file form S-3? Multiple Choice Ο Ο Ο Ο Ο What is shelf registration? Multiple Choice 0 A procedure that all A procedure that allows the sale of securities to a small group of knowledgeable investors without any general solicitation. 0 A procedure that allows large companies to register securities with the SEC and...
Recent research has shown that creative people are more likely to cheat than their less creative...
Recent research has shown that creative people are more likely to
cheat than their less creative counterparts (Gino & Ariely,
2011). Participants in the study first completed creativity
assessment questionnaires and then returned to the lab several days
later for a series of tasks. One task was a multiple-choice general
knowledge test for which the participants circled their answers on
a test sheet. Afterward, they were asked to transfer their answers
to bubble sheets for computer scoring. However, the experimenter...
Determinants of the price elasticity of demand Consider some determinants of the price elasticity of...
Determinants of the price elasticity of demand Consider some determinants of the price elasticity of demand: The availability of close substitutes . Whether the good is a necessity or a luxury How broadly you define the market . The time horizon being considered A good with many close substitutes is likely to have relatively _______ demand, since consumers can easily choose to purchase one of the close substitutes if the price of the good rises A good's price elasticity of demand depends in part on how necessary...
Suppose that the income elasticity of demand for good X is positive but less than 1. Other things being equal, which of the following statements is incorrect? O A. Good X is a normal good. OB. The quantity demanded of good X decreases as a consumer's income declines. OC. A consumer buys more X as income rises, but the share of income spent on good X falls. OD. A consumer buys more X as income rises and the share of...
According to this diagram, the income elasticity of demand for
salmon is
a) less than 0.5
b) equal to 0.5
c) greater than 0.5
d) can't say; insufficient information
$36,000 $20,000 12 16 Qsalmon
Which one of the following forms is used when companies have filed with the SEC for less than 36 months but are not large enough to file form S-3? Multiple Choice Ο Ο Ο Ο Ο What is shelf registration? Multiple Choice 0 A procedure that all A procedure that allows the sale of securities to a small group of knowledgeable investors without any general solicitation. 0 A procedure that allows large companies to register securities with the SEC and...
Recent research has shown that creative people are more likely to
cheat than their less creative counterparts (Gino & Ariely,
2011). Participants in the study first completed creativity
assessment questionnaires and then returned to the lab several days
later for a series of tasks. One task was a multiple-choice general
knowledge test for which the participants circled their answers on
a test sheet. Afterward, they were asked to transfer their answers
to bubble sheets for computer scoring. However, the experimenter...
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