Multiple Choice - YED1. Calculate the YED for good A if household incomes rise from $15,000 to$15,750 and quantity demanded rises from 200,000 units to 204,000.A. +4.0B. +0.4C.-4.0D. -0.42. Calculate the change in household income if the quantity demanded forgood B falls by 6% and its YED is -1.2.A -0.5B.-5.0C. +5.0D. 0.53. Which of the following is not true about YED?A. Inferior goods have a YED of 0B. Normal goods have a positive YEDC. Luxury goods have a YED of greater than 1D. Necessity goods have a YED of between 0 and 14. Which of the following goods is most likely to have a negative YED?A. Designer handbagB. Prestige carC. Tinned vegetablesD. Electricity400V5. If incomes fall in a recession, what would you expect a chain of restaurantswith a YED of +1.6 to do?A. Set up a contract to order more tables and chairsB. Decide to expand the number of their outletsC. Hire more staffD. Negotiate with their suppliers to reduce food costs

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1. Calculate the YED for good A if household incomes rise from $15,000 to $15,750 and quantity demanded rises from 200,000 units to 204,000. 15 A +4.0 B. +0.4 C.-4.0 D. -0.4 A10

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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