Question

please answer all questions!
15. When a drought hits a country and a famine is possible, what probably falls more: the demand for food or the demand for haircuts? Why? Demand for food falls more because people want to eat less during a drought or famine. Demand for haircuts falls more because haircuts are an inferior good compared with food. Demand for food falls more because food is more of a luxury good than haircuts. Demand for haircuts falls more because haircuts are more of a luxury good than food. O O O 16. We mentioned that the median voter theorem doesn't always work, and sometimes a winning policy doesn't exist. This fact has driven economists and political scientists to write thousands of papers and books, both proving that fact and also trying to find good workarounds. The most famous theoretical example of how voting doesn't work is the Condorcet paradox. The Marquis de Condorcet, a French nobleman in the 1700s, wondered what would happen if three voters had preferences like those below. Three friends are holding a vote to see which French economist they should read in their study group. Here are their preferences: Jean Marie Claude Walras Bastiat Say 1st choice 2nd choice Bastiat Say Walras 3rd choice Say Walras Bastiat They vote by majority rule. If the vote is Walras vs. Say, who will win? Say vs. Bastiat? Bastiat vs. Walras? Walras; Say; Bastiat Say; Bastiat; Walras Say; Say; Walras Walras; Bastiat; Bastiat

Answer 1

Answer 15

The correct answer is Option D i-e Demand of haircuts falls more because haircuts are more of a luxury good than food .

Reasoning -

As the drought and famine is possible in the country , it would decline the supply and demand would increase in case of food .Also the question is about the demand of ood and haircut .So here we need to understand that food is the basic necessity which is important or necessary for survival but haircut is luxury good in this consition when demand of food is far more and supply of food is rare .we will consider here that haircut demand would fall and food demand would rise .Hence option D is correct . Also in option B haircut is considered as inferior good than food but inferior food is one who demand decline when people income rise .So its not correct .