Home Depot Earnings Hammered As gas and food prices increased and home prices slumped, people had less extra income to spend on home improvements. And the improvements that they made were on small inexpensive types of repairs and not major big-ticket items. Source: CNN, May 20, 2008 a. What does this news clip imply about the in- come elasticity of demand for big-ticket home-improvement items?
Home Depot Earnings Hammered As gas and food prices increased and home prices slumped, people had less extra income to spend on home improvements. And the improvements that they made were on small inexpensive types of repairs and not major big-ticket items. Source: CNN, May 20, 2008 a. What does this news clip imply about the in- come elasticity of demand for big-ticket home-improvement items?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Home Depot Earnings Hammered
As gas and food prices increased and home prices slumped, people had less extra income to spend on home improvements. And the improvements that they made were on small inexpensive types of repairs and not major big-ticket items.
Source: CNN, May 20, 2008
a. What does this news clip imply about the in- come elasticity of demand for big-ticket home-improvement items?
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