Suppose that x is a normal good and y is an inferior good. The Marshallian demand functions for these goods are denoted by gx and gy, respectively. Which of the following statements about cross-price effects can we conclude with certainty? (a) aga >0 дру agr 0 (b) apy agy (c) apr agy (d) ǝpx (e) There is not enough information to conclude any of these statements. >0 ≤0

Suppose that x is a normal good and y is an inferior good. The Marshallian demand functions for these goods are denoted by gx and gy, respectively. Which of the following statements about cross-price effects can we conclude with certainty? (a) aga >0 дру agr 0 (b) apy agy (c) apr agy (d) ǝpx (e) There is not enough information to conclude any of these statements. >0 ≤0

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that x is a normal good and y is an inferior good. The Marshallian demand functions for these goods are denoted by 9x and gy, respectively. Which of the following statements about cross-price effects can we conclude with certainty? Ꭷg« > 0 дру (a) (b) (c) agy (d) дрх (e) There is not enough information to conclude any of these statements. agr дру Əgy дрх 0 >0 ≤0
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Assuming the change in demand from D1 to D2 was caused by a decrease in consumer income from $30,000 to $10,000, what is the income elasticity of demand at price=$20 is , and this is a product? (a) 1/2 , inferior (b) -2, inferior (c) -1/2, inferior (d) 1, normal (e) 2, normal
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Given the demand function QD = 18 − 3P, answer the following ques-tions.(a) Calculate the price elasticity of demand if the price increases fromP1 = 2 to P2 = 5 using the midpoint method.(b) Calculate the point price elasticity of demand at QD = 13.5.(c) At which price/quantity is demand unit elastic?(d) At which price/quantity is demand perfectly elastic and perfectlyinelastic, respectively?