Suppose income increases by 25 peroent and, as a result, the quantity of a particular brand...
Suppose the price of salt increases by 20 percent and, as a result, the quantity of pepper demanded (holding the price of pepper constant) increases by 2 percent The cross-price elasticity of demand between salt and pepper is(Enter your response rounded to two decimal places and include a minus sign if appropriate) In this example, salit and pepper are Instead, suppose salt and pepper were complements. If so, then the cross-price elasticity of demand between salt and pepper would be...
Suppose the price of salt increases by 20 percent and, as a result, the quantity of pepper demanded (holding the price of pepper constant) increases by 6 percent. . (Enter your response rounded to two decimal The cross-price elasticity of demand between salt and pepper is places and include a minus sign if appropriate.)
7. If the price of orange juice rises 10%, and as a result the quantity demanded falls by 8%, the price elasticity of demand for orange juice is O A. inelastic. OB. -1.25 O c. Both A and B above. OD. Neither A nor B above. 18. If the price of orange juice rises 10% and as a result the quantity demanded falls by B%, the price elasticity of demand for orange juice is O A. - 10.0. OB. -0.80....
The price of basketball shoes increases by 4%, causing the quantity demanded of headbands to decrease by 6%. The cross-price elasticity of demand is type your answer and the goods are choose your answer.. 2 points Victor buys 40 tickets to NBA games a year when his yearly income is $40,000. After his income falls to $35,000 a year, he only purchases 35 tickets to NB games a year. Calculated using the midpoint formula, Victor's Income elasticity of demand for...
1. If the demand for a particular brand of car decreases by 2% due to an increase in income by 10%, how much is the income elasticity? Is this product normal/inferior good? 2. Suppose that when the average family income rises from $30,000 per year to $40,000 per year, the average family’s purchases of toilet paper rise from 100 rolls to 105 rolls per year. Use mid-point formula. (circle the correct answers). The income-elasticity of demand for toilet paper is...
A normal good has a income elasticity of demand and quantity demanded as income rises. O A. negative; increases OB. positive; decreases O C. positive; increases OD. negative; decreases
Suppose that after hurricane Irene, the average income in Cape Charles, Virginia decreased by 8 percent. In response to this change in income, suppose the quantity of steak demanded in Cape Charles (holding the price of steak constant) decreased by 6 percent. What is the income elasticity of demand for steak in Cape Charles? The income elasticity of demand for steak in Cape Charles is . 75. (Enter your response rounded to two decimal places.) In this instance, steak in...
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...
Suppose that when the price for Good A increases by 7 percent, the quantity demanded for that product decreases by 6 percent. Accordingly, calculate the own price elasticity of demand for Good A. Is demand for Good A elastic, inelastic, or unit elastic?
Question 7 [20] 7.1. Suppose the average monthly income of households in Kagiso increases from R3 000 to R3 500. As a result, the quantity of white bread demanded increases from 1 200 to 1300 loaves per day, while the quantity of brown bread decreases from 2 100 to 2 000 loaves per day. The quantity of KFC pieces demanded also increases from 350 to 550 pieces per day. 7.1.1. Use the arc (midpoint) formula to calculate the income elasticity...