If the disposable income increases by 5% and the income elasticity of demand is 0,5, what change in demand would we expect to see? 4. a) 10% b) 5% c) -5% d) 2,5% If a decrease in price does not lead to an increase in revenue, we might conclude that the demand for this product is? 5. a) Price inelastic b) Income inelastic c) Price elastic d) Income elastic If the price elasticty of demand for a good is -2.5 and the firm cuts the price of this good by 5%, what change would we expect to see in the demand for this product? 6. a) Increase of 2% b) Increase of 12,5% c) Increase of 0,5% d) Increase of 10%

If the disposable income increases by 5% and the income elasticity of demand is 0,5, what change in demand would we expect to see? 4. a) 10% b) 5% c) -5% d) 2,5% If a decrease in price does not lead to an increase in revenue, we might conclude that the demand for this product is? 5. a) Price inelastic b) Income inelastic c) Price elastic d) Income elastic If the price elasticty of demand for a good is -2.5 and the firm cuts the price of this good by 5%, what change would we expect to see in the demand for this product? 6. a) Increase of 2% b) Increase of 12,5% c) Increase of 0,5% d) Increase of 10%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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