Use the information below to answer the following questions. Fact 9.3.2 Hamptons Glamour Finds a Humbler Home Lucy Martin collected and sold vintage clothing in the wealthy Hamptons, but in the recession of 2008, her sales fell. She eventually moved her shop to Tannersville, N.Y., where her expenses are 70 percent less than they were in the Hamptons. Source: The New York Times, December 22, 2016 Refer to Fact 9.3.2. According to the news clip, vintage clothing is used clothing bought O A. a substitute; decreases OB. an inferior; decreases O C. a normal; decreases OD. a normal; increases O E. an inferior; increases good. If the price of vintage clothing falls and income remains the same, the quantity of

Use the information below to answer the following questions. Fact 9.3.2 Hamptons Glamour Finds a Humbler Home Lucy Martin collected and sold vintage clothing in the wealthy Hamptons, but in the recession of 2008, her sales fell. She eventually moved her shop to Tannersville, N.Y., where her expenses are 70 percent less than they were in the Hamptons. Source: The New York Times, December 22, 2016 Refer to Fact 9.3.2. According to the news clip, vintage clothing is used clothing bought O A. a substitute; decreases OB. an inferior; decreases O C. a normal; decreases OD. a normal; increases O E. an inferior; increases good. If the price of vintage clothing falls and income remains the same, the quantity of

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter10: Price-searcher Markets With Low Entry Barriers

Section: Chapter Questions

Problem 3CQ

See similar textbooks

Similar questions

explain how a decrease in the real income of consumers would affect the market for luxury wallets sold by Saks Fifth Avenue.
Only typed answer
A consumer has a budget to spend on Shoes and Socks. At their current levels of consumption, they spend their entire budget and receive 0.60 marginal utility per dollar from Shoes and 0.40 marginal utility per dollar from Socks. How should they change their consumption to maximize their utility? Buy more Shoes and fewer Socks. Buy only Shoes, and no Socks. Buy more Shoes and more Socks. Buy only Socks, and no Shoes. Buy fewer Shoes and more Socks
helpp
Nadia consumes two goods, food and clothing. The price of food is $2, the price of clothing is $5, and her income is $1,000. She always spends 40% of her income on food regardless of the price of food, clothing, or her income. What is her price elasticity of demand for food? What is her cross-price elasticity of demand for food with respect to clothing? What is her income elasticity of demand for food?
How does Michael Porter define a substitute product? What are substitutes for Cash App's products and services?
Maria has decided always to spend one-third of her income on clothing. What is her income elasticity of clothing demand? What is her price elasticity of clothing demand? If Maria’s tastes change and she decides to spend only one-fourth of her income on clothing, how does her demand curve change? What is her income elasticity and price elasticity now?
Marie has a weekly budget of $24. Pie's are $12. Magazine's are $4. What is the maximum number of pies Marie can buy in a week? What is the maximum number of magazines Marie can buy in a week?
Explain utility and its connection to consumer behavior
If you buy less clothing because the price of clothing at your favorite store has gone up, what are you experiencing?
3-4. What is the difference between a consumer’s disposable and discretionary income?
1. Jack is considering selling his elliptical machine, which he never really used, is high quality, and has been taking up space in his spare bedroom. He lists it on Facebook Marketplace for "$1,200 or best offer" but in reality won't sell it for less than $1,000. Lina is looking to purchase a used elliptical machine. For a high-quality elliptical, she is willing to pay up to $1,300, and for a low-quality elliptical, she is willing to pay $600. Lina is risk neutral but she cannot tell if the elliptical machine is high quality or low quality. If she believes that 60% of used elliptical machines are high quality and 40% are low quality, what is the maximum price that Lina would be willing to pay? Would Jack agree to this price?