ZuoTi.Pro
Question

a.What's an example of a good that you consume for which your individual demand is inelastic?...

a.What's an example of a good that you consume for which your individual demand is inelastic?

b.Consider the good that you mentioned in part a. Is there a close substitute for that good? How would your demand for the inelastic good change if the price of a substitute decreased?

c.Again, consider the good from part a. How would your consumption of that good change if you woke up tomorrow and made $80,000 per year?

d.Once more, think of the good from part a. What kind of good is it? Normal/inferior/Giffen? Why do you think that?

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

Homework Answers

Answer #1

A.Salt has inelastic demand

B.a.There is no substitute of salt.However,if any substitute was developed and its price was lower than that of salt,then the demand for salt will fall as I will switch to the cheaper substitute.

c.My demand won't change for this good.It is a necessary good and my demand for salt will remain same irrespective of my income.

d.Salt is a normal good.It consumption remains same irrespective of price or income of the consumer.

0 0
Add a comment
Know the answer?
Add Answer to:
a.What's an example of a good that you consume for which your individual demand is inelastic?...
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

  • QUESTION 36 If the demand for a good is price inelastic and the good price is...

    QUESTION 36 If the demand for a good is price inelastic and the good price is increased, then the marginal revenue (MR) received by the seller will not change. decrease. increase. Can't be determined from this information. QUESTION 37 If the income elasticity of a particular good is negative 0.2, it would be considered a superior good. Oa normal good. O an inferior good. an elastic good.

  • Think of a good that you believe is highly inelastic and poll at least ten people...

    Think of a good that you believe is highly inelastic and poll at least ten people about how their consumption would change if the price changed [change: choose any good - do you think demand is elastic or inelastic? Then do poll]. You should ask each person a) how much they currently buy of the good at current prices, b) how much price would have to change before they would reduce their consumption (if they say they would always buy...

  • Give an example of a good you purchased for which your own demand is elastic and...

    Give an example of a good you purchased for which your own demand is elastic and another example of a good for which your demand is inelastic.  (Tip: if you are having a tough time thinking of products or services you bought, think back to your purchases within the last 3 months. See example in Point 1 below.) Share with the class: 1.What two products or services did you buy? State whether they are elastic or inelastic, estimate their elasticity coefficient...

  • 1. Which of the following claims is true at each point along a price-consumption curve? A)...

    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...

  • 35) If your income elasticity of demand for hot dogs is negative, then: A) your demand...

    35) If your income elasticity of demand for hot dogs is negative, then: A) your demand curve for hot dogs is not downward sloping. B) hot dogs are an inferior good for you. C) hot dogs have no close substitutes for you. D) you must not enjoy eating hot dogs. 1) The price elasticity of demand is a measure of: A) the change in quantity demanded of a good that results from a change in its price. B) the change...

  • 7. Consider the figure below, which shows the budget constraint and the indifference curves of good...

    7. Consider the figure below, which shows the budget constraint and the indifference curves of good King Zog. Zog is in equilibrium with an income of s300, facing prices px 4 and py sio 30 22.5 0 35 43 75 90 a. How much X does Zog consume? b. If the price of X falls to s2.50, while income and the price of Y stay constant, how much X will Zog consume? c. How much income must be taken away...

  • 22. Consider two imaginary goods, widgets and gadgets. The cross-price elasticity of demand for widgets with respec...

    22. Consider two imaginary goods, widgets and gadgets. The cross-price elasticity of demand for widgets with respect to the price of gadgets is +0.5. This tells us that widgets and gadgets are a. Compliments b. Substitutes c. Unrelated in consumption For this condition to hold, 23. Assume that the market demand for widgets is perfectly inelastic. a. There must be no good substitute for widgets, and widgets must be a normal good. b. There must be no good substitute for...

  • 1. (a) Suppose you spend all of your income on apples and oranges, which are both...

    1. (a) Suppose you spend all of your income on apples and oranges, which are both normal goods and which are imperfect substitutes. If the price of apples increases, will you consume more or fewer apples as a result of the substitution effect? What about the income effect? (b) Suppose you consume two goods: Ramen and Starbucks coffee. Ramen is an inferior good and Starbucks coffee is a normal good. The price of Ramen increases. Assume Ramen is not a...

  • 1.Suppose you are a manager for a company and you manufacture good X. The demand for...

    1.Suppose you are a manager for a company and you manufacture good X. The demand for your product has been estimated to be The relevant price and income data are as follows Does this estimated demand equation satisfy the law of demand? Which goods are substitutes for X? Is X an inferior or a normal good? using the above information predict how much X will be purchased? e. Graph the demand curve for X given the above information. (Hint: it...

  • Suppose that you just got a raise at work and are trying to figure out how...

    Suppose that you just got a raise at work and are trying to figure out how you are going to spend the additional money. Given the table below, answer the following: % Change in Income % Change in Quantity Demanded of Good A -2% -3% 0% -2% 4% -1% 6% 0% 8% 4% 10% 6% a. Calculate the elasticity of income (EY) for Good A if your raise was 8% b. Is Good A an inferior or normal good. c....

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