9. Match each concept in Column A with the corresponding fact or example in Column B.Column AColumn BPrice-inelastic demand1. Income elasticity of 1.4a.b.Inferior good2. A 12% rise in price is associated with a12% fall in quantity demandedIncome effect of a price change3. Dining out more often because your landlordreduced your rentC.d.Perfectly price-elastic supply4. Expenditures on a good increase when yourincome risesUnit price elasticity of demandAny rise in price will cause quantity de-е.5.manded to fall to zerof.Perfectly inelastic supply6. Buying fewer muffins, and more donuts, be-cause the relative price of muffins has riseng.Normal good7.Revenues rise as a seller increases her priceh.Perfectly elastic demand8.What you face when buying milk at thegrocery storei.Substitution effect9.The acres of land in downtown Chicagoj.Income-elastic demand10.People spend less on this as they get richer

a. Price-inelastic demand - buying fewer muffins, more donuts, because the relative price of muffins…

Column A Column B 1. Income elasticity of 1.4 2. A 12% rise in price is associated with a 12% fall in quantity demanded a. Price-inelastic demand b. Inferior good Income effect of a price change 3. Dining out more often because your landlord reduced your rent с. d. Perfectly price-elastic supply 4. Expenditures on a good increase when your íncome rises е. Unit price elasticity of demand 5. Any rise in price will cause quantity de- manded to fall to zero f. Perfectly inelastic supply 6. Buying fewer muffins, and more donuts, be- cause the relative price of muffins has risen

Column A Column B 1. Income elasticity of 1.4 2. A 12% rise in price is associated with a 12% fall in quantity demanded a. Price-inelastic demand b. Inferior good Income effect of a price change 3. Dining out more often because your landlord reduced your rent с. d. Perfectly price-elastic supply 4. Expenditures on a good increase when your íncome rises е. Unit price elasticity of demand 5. Any rise in price will cause quantity de- manded to fall to zero f. Perfectly inelastic supply 6. Buying fewer muffins, and more donuts, be- cause the relative price of muffins has risen

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 11E: The price elasticity of the demand for gasoline is -0.02. The price elasticity of demand for...

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Question

9. Match each concept in Column A with the corresponding fact or example in Column B.
Column A
Column B
Price-inelastic demand
1. Income elasticity of 1.4
a.
b.
Inferior good
2. A 12% rise in price is associated with a
12% fall in quantity demanded
Income effect of a price change
3. Dining out more often because your landlord
reduced your rent
C.
d.
Perfectly price-elastic supply
4. Expenditures on a good increase when your
income rises
Unit price elasticity of demand
Any rise in price will cause quantity de-
е.
5.
manded to fall to zero
f.
Perfectly inelastic supply
6. Buying fewer muffins, and more donuts, be-
cause the relative price of muffins has risen
g.
Normal good
7.
Revenues rise as a seller increases her price
h.
Perfectly elastic demand
8.
What you face when buying milk at the
grocery store
i.
Substitution effect
9.
The acres of land in downtown Chicago
j.
Income-elastic demand
10.
People spend less on this as they get richer

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