.If someone told you the cross price elasticity between driving and riding the Metro is -5, this is Group of answer choices *consistent with the article. *inconsistent with the article. *two of the answers are correct. *means both are normal goods *means one is a normal good and the other is an inferior good.
.If someone told you the cross price elasticity between driving and riding the Metro is -5, this is Group of answer choices *consistent with the article. *inconsistent with the article. *two of the answers are correct. *means both are normal goods *means one is a normal good and the other is an inferior good.
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 6PA: Suppose that your demand schedule for DVDs is as follows: Price Quantity Demanded (income = 10,000)...
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1.If someone told you the cross price elasticity between driving and riding the Metro is -5, this is
Group of answer choices
*consistent with the article.
*inconsistent with the article.
*two of the answers are correct.
*means both are normal goods
*means one is a normal good and the other is an inferior good.
2.If gas prices rose from $3 to $4 a gallon and gasoline consumption decreased by 10%
Group of answer choices
*demand for gasoline is elastic.
*demand for gasoline is inelastic.
*total expenditures on gasoline would fall.
3.If gas prices rose from $3 to $4 a gallon and gasoline consumption decreased by 50%
Group of answer choices
*demand for gasoline is elastic.
*demand for gasoline is inelastic.
*total expenditures on gasoline would fall.
4.The greater the price elasticty of driving
Group of answer choices
*an increase in the price of gas would have a greater effect on traffic congestion
*an increase in the price of gas would have no effect on traffic congestion
*the smaller the decrease in traffic congestion when the price of gasoline rises.
5.The smaller the income elasticty of driving
*an increase in the price of gas would have no effect on traffic congestion
*the smaller the decrease in traffic congestion when the price of gasonline rises
*the bigger the decrease in traffic congestion when the price of gasoline rises
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