QUESTION 33 Consider the market for good x. Select all of the foll A. A decrease in the price of good x OB. An increase in the number of buyers C. An increase in the price of good y (y is a substit OD. Increase in income if good x is a normal good E. Increase in income if good x is an inferior, good OF. An increase in the price of good x G. An increase in the price of good z (z is a comple

QUESTION 33 Consider the market for good x. Select all of the foll A. A decrease in the price of good x OB. An increase in the number of buyers C. An increase in the price of good y (y is a substit OD. Increase in income if good x is a normal good E. Increase in income if good x is an inferior, good OF. An increase in the price of good x G. An increase in the price of good z (z is a comple

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 8P

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Similar questions

Economists define normal goods as having a positive income elasticity. We can divide normal goods into two types: Those whose income elasticity is less than one and those whose income elasticity is greater than one. Think about products that would fall into each category. Can you come up with a name for each category?
The quantity supplied of a good rises from 120 to 140 as price rises from 4 to 5.50. What is the price elasticity of supply of the good?
Suppose that your demand schedule for pizza is as follows: a. Use the midpoint method to calculate your price elasticity of demand as the price of pizza increases from 8 to 10 if (i) your income is 20,000 and (ii) your income is 24,000. b. Calculate your income elasticity of demand as your income increases from 20,000 to 24,000 if (i) the price is 12 and (ii) the price is 16.
Income Effects depend on the income elasticity of demand for each good limit you buy. If one of the goods you buy has a negative income elasticity, that is, it is an inferior good, what must be true of the income elasticity of the other good you buy?
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B) When the price of Good A is $27, the quantity demanded of Good B is 1,200 units. When the price of Good A falls to $23 the quantity demanded of Good B falls to 800 units. i. Calculate the cross elasticity of demand ii. Are the goods substitutes or complements? Explain your choice. iii. Explain how cross elasticity of demand is used. vi. Explain how income elasticity of demand is used.
a. a normal good; positive b. an inferior good; positive c. an inferior good; negative d. a normal good, negative
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QUESTION 39 Exhibit 3-6 02 D3 Quantity of Good X Cefer to Exhibit 3-6. If a decrease in income causes the demand for good X to shift from D 1 to D 2, then good X a, a substitute good. b. an inferior good. c. a normal good. d. a complementary good. e. a neutral good.
QUESTION 11 If macaroni and cheese is an inferior good, then an increase in A. the price will cause the demand curve for macaroni and cheese to shift to the left. OB. a consumer's income will cause the demand curve for macaroni and cheese to shift to the right. C. a consumer's income will cause the demand curve for macaroni and cheese to shift to the left. OD. the price will cause the demand curve for macaroni and cheese to shift to the right.
The price of milk falls.this causes an increase in the price of good cheese. therefoe, milk and cheese are complements
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