3. For each of the following pairs, which of the two goods is more likely to be demanded than the other and why. a. Demand for tangerines vs. demand for fruit b. Demand for beef next month vs. demand for beef over the next decade Demand for Exxon gasoline on the corner of 7th and Grand vs. the demand for gasoline in an entire city d. Demand for insulin vs. demand for vitamins C.

3. For each of the following pairs, which of the two goods is more likely to be demanded than the other and why. a. Demand for tangerines vs. demand for fruit b. Demand for beef next month vs. demand for beef over the next decade Demand for Exxon gasoline on the corner of 7th and Grand vs. the demand for gasoline in an entire city d. Demand for insulin vs. demand for vitamins C.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 3QR

See similar textbooks

Similar questions

Income Effects depend on the income elasticity of demand for each good limit you buy. If one of the goods you buy has a negative income elasticity, that is, it is an inferior good, what must be true of the income elasticity of the other good you buy?
Would you expect supply to play a more significant role in determining the price of a basic necessity like food or a luxury like perfume? Explain. Hint: Think about how the price elasticity of demand will differ between necessities and luxuries.
What is the difference between the demand and the quantity demanded of a product, say milk? Explain in words and show the difference on a graph with a demand curve for milk.
Suppose the cross-price elasticity of apples with respect to the price of oranges is 0.4, and the price of oranges falls by 3. What will happen to the demand for apples?
If a 10 decrease in the price of one product that you buy causes an 8 increase in quantity demanded of that product, will another 10 decrease in the price cause another 3 increase (no more and no less) in quantity demanded?
The equation for a demand curve is P=483Q. What is the elasticity in moving from quantity of 5 to a quantity of 6?
Explain all the reasons why a decrease in a products price would lead to an increase in purchases.
What does a downward-sloping demand curve mean about how buyers in a market will react to a higher price?
The avenge annual income rises from 25,000 to 33,000, and the quantity of bleed consumed in a year by the avenge person falls from 30 loaves to 22 loaves. What is the income elasticity of bread consumption? Is bread a normal or an inferior good?
(Other Elasticity Measures) Complete each of the following sentences: a. The income elasticity of demand measures, for a given price, the __________ in quantity demanded divided by the __________ income from which it resulted. b. If a decrease in the price of one good causes a decrease in demand for another good, the two goods are __________. c. If the value of the cross-price elasticity of demand between two goods is approximately zero, they are considered __________.
What is the price elasticity of demand? Can you explain it in your own words?
What is the formula for the income elasticity of demand?