Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 13, Problem 10IAPA
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Suppose a consumer had an income of $100 and spends $50 on potatoes. Suppose now that his income goes up to $150, and his spending on potatoes goes up to $100. No prices have changed (so the quantity of potatoes purchased doubled). Compute the consumer’s income elasticity for potatoes.
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Chapter 13 Solutions
Foundations of Economics (8th Edition)
Ch. 13.A - Prob. 1SPPACh. 13.A - Prob. 2SPPACh. 13.A - Prob. 3SPPACh. 13.A - Prob. 4SPPACh. 13.A - Prob. 5SPPACh. 13.A - Prob. 1IAPACh. 13.A - Prob. 2IAPACh. 13.A - Prob. 3IAPACh. 13.A - Prob. 4IAPACh. 13 - Prob. 1SPPA
Ch. 13 - Prob. 2SPPACh. 13 - Prob. 3SPPACh. 13 - Prob. 4SPPACh. 13 - Prob. 5SPPACh. 13 - Prob. 6SPPACh. 13 - Prob. 7SPPACh. 13 - Prob. 8SPPACh. 13 - Prob. 9SPPACh. 13 - Prob. 10SPPACh. 13 - Prob. 1IAPACh. 13 - Prob. 2IAPACh. 13 - Prob. 3IAPACh. 13 - Prob. 4IAPACh. 13 - Prob. 5IAPACh. 13 - Prob. 6IAPACh. 13 - Prob. 7IAPACh. 13 - Prob. 8IAPACh. 13 - Prob. 9IAPACh. 13 - Prob. 10IAPACh. 13 - Prob. 1MCQCh. 13 - Prob. 2MCQCh. 13 - Prob. 3MCQCh. 13 - Prob. 4MCQCh. 13 - Prob. 5MCQCh. 13 - Prob. 6MCQCh. 13 - Prob. 7MCQ
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- Will the demand for pay TV shows increase in the futurearrow_forwardJames consumes two types of goods: fruit and clothing. Fruits cost him $ 2 per unit, clothing costs $ 25 per unit, and his income is $ 1,000. He always spends 40% of his income on fruit, regardless of the price of fruit and clothing, as well as his income. a. What is the cross-price elasticity of its demand for fruit relative to the price of clothing? b.What is the elasticity-income of its fruit demand? Detail your answers.arrow_forwardQuestion 3 When her income falls from $50,000 to $20,000, Arianna increases her monthly purchase of hamburger from 20 pounds to 35 pounds. From the midpoint method, Arianna's income elasticity of demand for hamburgers is O -1.57. O -0.63. 1.57. O 0.54. -0.85.arrow_forward
- 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. Nadia always spends 40 percent of her income on food regardless of the price of food, the price of clothing, or her income.What is her price elasticity of demand for food?arrow_forwardCan i get some help?arrow_forwardIf iPad is considered a normal good, when income in Camarillo goes up, the effect on iPad in Camarillo will be: Group of answer choices no change in the demand. an increase in the demand. an increase in the supply. a decrease in the demand.arrow_forward
- Need help with drawing the demand curvearrow_forwardWhen Alex's income increased from $7,000 to $9,000, he increased his consumption of bagels from 5 to 9 a month and decreased his consumption of donuts from 15 to 9 a month. Calculate Alex's income elasticity of demand for bagels and donuts. >>> Answer to 2 decimal places. >>> If your answer is negative, include a minus sign. If your answer is positive, do not include a plus sign. Alex's income elasticity of demand for bagels is? Alex's income elasticity of demand for donuts is?arrow_forward4arrow_forward
- Can i get help with this one?arrow_forwardConsider the demand for a luxury good such as a yacht. You can plot three different straight lines through the three points X, Y, and Z on this graph. Place the blue line (circle symbol) so that it goes through two of the points and shows the most likely demand curve for this type of good. Hint: Consider the relative elasticities of the different possible demand curves. 120 100 Demand Curve メ) 60 メャ メマ 40 20 0. 2. 4. 6. 8 10 12 LUXURY GOODS (Thousands per year) 14 16 PRICE (Dollars per yacht)arrow_forwardSita buys only two items form the market—bread and jeans. Her income and the price of bread is constant. As jeans become costlier she buys less bread. Which of the following does this imply. Why? price elasticity of demand for jeans is less than 1 (one) Jeans are a luxury Bread is an inferior good There is no substitution effect in this casearrow_forward
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