12. In the nation of Transporta, the income elasticity of demand for used cars is -2.66. So when incomes in this nation increase by 10 percent A. the quantity of used cars demanded will decrease by 26.6 percent. B. used cars will be normal goods. C. the quantity of used cars demanded will increase by 26.6 percent. D. the demand curve for used cars will shift rightward. 14. Which of the following represents a price elastic supply? A. The quantity supplied increases by 21 percent as a result of an increase in the price of 12 percent. B. The quantity demanded increases 18 percent as a result of a decrease in the price of 8 percent. C. The price rises by 22 percent causing the quantity supplied to increase by 3 percent. D. The price rises by 8 percent causing the quantity demanded to fall by 10 percent.
12. In the nation of Transporta, the income elasticity of demand for used cars is -2.66. So when incomes in this nation increase by 10 percent A. the quantity of used cars demanded will decrease by 26.6 percent. B. used cars will be normal goods. C. the quantity of used cars demanded will increase by 26.6 percent. D. the demand curve for used cars will shift rightward. 14. Which of the following represents a price elastic supply? A. The quantity supplied increases by 21 percent as a result of an increase in the price of 12 percent. B. The quantity demanded increases 18 percent as a result of a decrease in the price of 8 percent. C. The price rises by 22 percent causing the quantity supplied to increase by 3 percent. D. The price rises by 8 percent causing the quantity demanded to fall by 10 percent.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 10PA
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12. In the nation of Transporta, the income
A. the quantity of used cars demanded will decrease by 26.6 percent.
B. used cars will be normal goods.
C. the quantity of used cars demanded will increase by 26.6 percent.
D. the demand curve for used cars will shift rightward.
14. Which of the following represents a price elastic supply?
A. The quantity supplied increases by 21 percent as a result of an increase in the price of 12 percent.
B. The quantity demanded increases 18 percent as a result of a decrease in the price of 8 percent.
C. The price rises by 22 percent causing the quantity supplied to increase by 3 percent.
D. The price rises by 8 percent causing the quantity demanded to fall by 10 percent.
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