Every month, Sam spends 0.2 of his income on gasoline, no matter what the price is. The price of good X is 7.1 and Sam's income is 81. Find the absolute value of the slope of Sam's inverse demand curve and enter it below. (Hint: Write down the equation consistent with the above statement and use it to find Sam's inverse demand function.)

Every month, Sam spends 0.2 of his income on gasoline, no matter what the price is. The price of good X is 7.1 and Sam's income is 81. Find the absolute value of the slope of Sam's inverse demand curve and enter it below. (Hint: Write down the equation consistent with the above statement and use it to find Sam's inverse demand function.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Q: Sally gets a raise of 12%, and as a result, her demand for burgers decreases by 9%. What is the income elasticity of Sally’s demand for burgers? Are burgers a normal good, an inferior good, or neither for Sally?
demand for Caramel Iced Mochas is given by p=7−.25x dollars per drink, where x drinks are sold every day. At what number of drinks sold is consumer spending maximized? Round your answer to the nearest whole number
Suppose that, by law, a person is required to consume a fixed amount of good X, say X0. Assuming X is a normal good, explain how this law reduces utility for both high and low income people.
When Sam has an income of 1.000 , he consumes 30 units of good A and 50 units of good B After Sam's income increases to $1,500 , he consumers 60 units of good A and 40 units of good B. Which of the following statements is correct ? a- Good A is a normal good and good B is an inferior good b- Both goods A and B are inferior goods c- Good A is an inferior good, and good B is a normal good d- Both goods A and B are normal goods
A consumer's weekly income is $5000, the price of a cell phone is $1250, and the price of a watch is $500. What quantity of cell phones and watches will maximize the consumer's utility if they spend their entire weekly income on cell phones and watches? Explain your using I. answer marginal Suppose that this consumer's income elasticity for watches is analysis. 5.4. what does this indicate about watches? If the cross-elasticity calculates to 0.8 what does this indicate about the relationship between watches and cell phones?
Draw and label a graph that depicts a linear, downward-sloping demand curve for beef brisket. Assume that when Walmart increases the price of beef brisket the revenue from sales of beef brisket increases. Assume that the demand for brisket does not change (the demand curve does not shift). Is the demand for beef brisket price-elastic or price-inelastic?
Consumer buys 10 units of Good A when the price of Good B is $5. When the price of Good B rises to $6 (the price of Good A remaining unchanged) the consumer buys 14 units of Good A Using an appropriate formula, calculate this Consumer’s cross Elasticity of demand for Good A. Show your working. Is Good A, a substitute for, or a complement to, Good B? Explain your reasoning.
Which of the following statements is TRUE regarding the relationship between Complimentary Goods? a An increase in the price of syrup will decrease demand for pancakes b An expected storm will decrease demand for umbrellas c A decrease in the price of chicken will increase demand for beef d A price increase in pancakes will decrease demand for pancakes
A consumer is choosing between magazines and books. His set of čonsumer optimums are shown on the graph to the right. 50 Consumer income allocated for these two goods is equal to $150. The price of magazines (P,) is equal to $5.00. 45- 40 How do these changes in the price of books affect the demand for magazines? 35 demand remains constant 30- We can consider books and magazines to be goods. 25- 20- 15- PCC substitute 10- 5- complementary 0- O 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 unrelated Books O étv 21 MacBook Air DII 80 F10 F11 F7 FB F9 F6 F4 F5 F3 F1 F2 * @ # $ 7 8 9 1 2 4 P T Y Q W J K S F く Z C V command oF option command O 回 .. - つエ B ** A.
A change of which of the following will not directly shift the demand curve for Regular Coke? Question 1 options: The price of regular Coke The price of diet Pepsi The price of diet Coke The income of the consumer