Good U has a price elasticity of demand of 2.5 and Good Y has a price elasticity of demand of 0.7. Which of the following statements below describes these elasticities? U has fewer substitutes than Y. O The elasticity of U is likely to be a short-run measure and the elasticity of Y is likely to be a long-run measure. O U is a luxury and Y is a necessity. O Uis a good when there is an increase in income and Y is a good when there is a decrease in income.

Good U has a price elasticity of demand of 2.5 and Good Y has a price elasticity of demand of 0.7. Which of the following statements below describes these elasticities? U has fewer substitutes than Y. O The elasticity of U is likely to be a short-run measure and the elasticity of Y is likely to be a long-run measure. O U is a luxury and Y is a necessity. O Uis a good when there is an increase in income and Y is a good when there is a decrease in income.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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