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Before the virus hits, the Good A market is on D1 and S1. The market price is P1. Suppose the income elasticity of Good A is -5. When the virus initially hits, the demand for Good A will [Select ] When Henry starts getting his enhanced plus regular unemployment benefits, the demand for Good A will (Select] Comparing his income when the virus initially hit (and he was receiving no unemployment benefits) to after he starts receiving normal and enhanced unemployment benefits, his income has ( Select ] Given the income elasticity this means demand after Henry starts receiving normal and enhanced unemployment benefits, will shift ( Select ] Income/Conumption Market (Good A) Price Henry D. $1000 S800 IC, S200 (B) Leisure

Before the virus hits, the Good A market is on D1 and S1. The market price is P1. Suppose the income elasticity of Good A is -5. When the virus initially hits, the demand for Good A will [Select ] When Henry starts getting his enhanced plus regular unemployment benefits, the demand for Good A will (Select] Comparing his income when the virus initially hit (and he was receiving no unemployment benefits) to after he starts receiving normal and enhanced unemployment benefits, his income has ( Select ] Given the income elasticity this means demand after Henry starts receiving normal and enhanced unemployment benefits, will shift ( Select ] Income/Conumption Market (Good A) Price Henry D. $1000 S800 IC, S200 (B) Leisure

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1) shift demand from D1 to D3, shift demand from D1 to D2, NOT AFFECT DEMAND FOR GOOD A

2)SHIFT TO THE RIGHT FROM D3,SHIFT TO THE LEFT FROM D3, REMAIN AT D3, sHIFT TO THE RIGHT FROM D2,sHIFT TO THE left  FROM D2,return to D1, RETURN TO D2

3)increased,decrease,stay the same 

4)fully back to D1, PARTIALLY BACK TO D1

Continued from the previous 3 questions. Before the virus hits, the Good A market is on D1 and S1. The market price is P1. Suppose the income elasticity of Good A is -5. When the virus initially hits, the demand for Good A will [Select ] When Henry starts getting his enhanced plus regular unemployment benefits, the demand for Good A will [Select] Comparing his income when the virus initially hit (and he was receiving no unemployment benefits) to after he starts receiving normal and enhanced unemployment benefits, his income has [ Select ] Given the income elasticity this means demand after Henry starts receiving normal and enhanced unemployment benefits, will shift [ Select ] Income/Consumption Market (Good A) Price Henry P: D. $1000 S800 IC, D, S200 * (B) Leisure
Transcribed Image Text:Continued from the previous 3 questions. Before the virus hits, the Good A market is on D1 and S1. The market price is P1. Suppose the income elasticity of Good A is -5. When the virus initially hits, the demand for Good A will [Select ] When Henry starts getting his enhanced plus regular unemployment benefits, the demand for Good A will [Select] Comparing his income when the virus initially hit (and he was receiving no unemployment benefits) to after he starts receiving normal and enhanced unemployment benefits, his income has [ Select ] Given the income elasticity this means demand after Henry starts receiving normal and enhanced unemployment benefits, will shift [ Select ] Income/Consumption Market (Good A) Price Henry P: D. $1000 S800 IC, D, S200 * (B) Leisure
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