Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Chapter 5, Problem 22SQ
To determine
The economic sense of the inferior good.
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when the income elasticity of demand is greater than unity, the commodity is
a. A non-related good.
b. A luxury
c. An inferior good
d. A necessity
The demand for a good will be less price elastic,
Select one:
a. The larger is the percentage of income spent on it
b. The higher is its price
c. The smaller the supply of the good
d. The fewer the substitutes available for the good
e. The fewer there are complements for the good
1. The price elasticity of demand for bread
A.
is computed as the percentage change in quantity demanded of bread divided by the percentage change
in price of bread.
B. will be higher if there is a new product that is a close substitute for bread.
C. will be higher if consumers consider bread to be a necessity.
D. All of the above are correct.
E. A and B, only
Chapter 5 Solutions
Micro Economics For Today
Ch. 5.3 - According to the previous discussion, what factors...Ch. 5 - If the price of a good or service increases and...Ch. 5 - Prob. 2SQPCh. 5 - Prob. 3SQPCh. 5 - Prob. 4SQPCh. 5 - Suppose a university raises its tuition from 3,000...Ch. 5 - Prob. 6SQPCh. 5 - Suppose a movie theater raises the price of...Ch. 5 - Charles loves Mello Yello and will spend 10 per...Ch. 5 - Prob. 9SQP
Ch. 5 - Prob. 10SQPCh. 5 - Prob. 11SQPCh. 5 - Prob. 12SQPCh. 5 - Prob. 13SQPCh. 5 - Consider the following supply schedule: What is...Ch. 5 - Prob. 15SQPCh. 5 - Prob. 16SQPCh. 5 - A perfectly elastic demand curve has an elasticity...Ch. 5 - Prob. 2SQCh. 5 - Prob. 3SQCh. 5 - Prob. 4SQCh. 5 - Price elasticity of demand tends to be larger in...Ch. 5 - If a decrease in the price of movie tickets...Ch. 5 - Prob. 7SQCh. 5 - The president of Tucker Motors says, Lowering the...Ch. 5 - Prob. 9SQCh. 5 - Along a segment of the demand curve where the...Ch. 5 - Prob. 11SQCh. 5 - Prob. 12SQCh. 5 - Prob. 13SQCh. 5 - Prob. 14SQCh. 5 - Prob. 15SQCh. 5 - Prob. 16SQCh. 5 - Suppose Sally buys exactly five bars of English...Ch. 5 - Prob. 18SQCh. 5 - Prob. 19SQCh. 5 - Prob. 20SQCh. 5 - If bus travel is an inferior good, its income...Ch. 5 - Prob. 22SQCh. 5 - If automobiles and gasoline are complements, then...Ch. 5 - Suppose that when price is 10, quantity supplied...Ch. 5 - Prob. 25SQ
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- 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?arrow_forwardThe price elasticity of the demand for gasoline is -0.02. The price elasticity of demand for gasoline at Joe’s 66 station is -1.2. Explain what might account for the different elasticities.arrow_forward35. The primary determinant of the price elasticity of supply of a good is: A. its degree of substitutability. B. the time frame for purchase of the good. C. fraction of a company's costs spent on the good. D. the amount of time suppliers have to respond to a price change.arrow_forward
- The cross elasticity of demand between good X and good Y is estimated to be zero. Which combination of goods is most likely to yield this result? A. The Financial Times and The Daily Telegraph B. A pencil and a bar of chocolate C. Milk or coffee D. Bread and butterarrow_forwardAll normal goods have A. income elasticities of demand greater than 1.0. B. price elasticities of demand greater than 1.0. C. negative price elasticities of demand. D. positive income elasticities of demand.arrow_forwardWhen a good has an income elasticity of demand coefficient of 4.54 the _____. A. good is a normal good and it is income elastic B. good is a normal good and it is income inelastic C. good is an inferior good and it is income elastic D. good is an inferior good and it is income inelasticarrow_forward
- Which is characteristic of a product with elastic demand? A. The good is regarded by consumers as a necessityB. There are a large number of good substitutes for the goodC. Buyers spend a small percentage of their total income on the productD. Consumers have had only a short time period to adjust to changes in pricearrow_forwardThe price elasticity of demand for a product tends to be greater the Select one: A. fewer close substitutes for it there are. B. more close substitutes for it there are. C. shorter the time span being considered. D. more necessary the product becomes.arrow_forwardIf a change in the price of a product results in no change in total revenue, what must be the case? A. The demand for the product must be inelastic. B. The demand for the product must be unit elastic. C. The demand for the product must be elastic. D. The demand for the product must be revenue inelastic.arrow_forward
- Answer each of the questions on your paper and/or in a computer file. To receive credit, youmust show all work. The price elasticity of demand for business air travel is -0.75 and for nonbusiness air travel is-1.50. a. Give an interpretation of the price elasticity of demand for business air travel. b. In what category does the price elasticity of demand for nonbusiness air travel fall? c. Show graphically how airlines could use third-degree price discrimination in thiscase.arrow_forwardIf the price elasticity of supply for a good is 0.48, then this means that A. the supply is inelastic and therefore the demand must also be inelastic. B. a 10 percent increase in price results in a 4.8 percentage increase in quantity supplied. C. a 10 percent price increase results in a 4.8 percentage decrease in quantity supplied. D. the supply is elastic. E. the percentage increase in quantity supplied is greater than the percentage increase in price.arrow_forward. ______________ is the willingness to buy a product and the ability to pay for it. Select one: a.Demand b.Quantity c.The Law of Demand d.Elasticityarrow_forward
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