Assuming that food platters and entertainment are normal goods, what can yousay about the quantity of each good thatHeather will purchase after the discount?Will the quantity of entertainment increase ordecrease, or is the change uncertain? Will thequantity of food increase or decrease, or isthe change uncertain?

Q: The income elasticity for good Y is 2.1, we can conclude that good Y is O inferior elastic Oa…

A: Given that the income elasticity of good y is 2.1 which is greater than 1.

Q: Something is an inferior good if the demand for the good a) decreases as the price of a substitute…

A: Inferior goods are referred to as those goods which are generally lower in quality compared to the…

Q: Generally speaking the demand for a good will be more inelastic if the good is very specific and…

A: The Demand is considered inelastic when due to change in price, the quantity doesn't changes much.…

Q: When Marvan received a promotion at work, his income rose by 20%, and he decided to increase his…

A: The concept of income elasticity explains how the income change leads to the change in demand of…

Q: conomics Two drivers, Walt and Jessie, each drive up to a gas station. Before looking at the price,…

A: Given the information: The quantity demanded by the Walt = 10 gallons Jessie demands the gallons of…

Q: The equation for a demand curve is P = 2/Q. What is the elasticity of demand as price falls from 5…

A: The price elasticity of demand refers to the changes in the quantity demanded due to the changes in…

Q: Noah walks past the same pharmacy every day. He realizes the pharmacy always changes its prices on…

A: Demand curve is negatively sloped showing inverse relationship between price and quantity demanded.

Q: a. Derive the demand for food (x) (as a function of px , py, I). (If you can’t solve for the general…

A: Answer: Given, Utility function: ux,y=-1x-4yMUx=1x2MUy=4y2Price of good x=pxPrice of good…

Q: c. What is a “complementary good”? Give an example. Does it have a positive or negative…

A: The complementary goods are the goods which are consumed simultaneously. The complementary goods…

Q: Suppose that cheese is a normal good. If the price of cheese increases, the demand curve for cheese…

A: Given that Cheese is a normal good. In the case of normal good the law of demand hold.

Q: And then I need to know what happened to the change in equilibruim price when the magnitude of the…

A: A rightward(leftward) shift in a demand curve essentially represents an increase(decrease) in…

Q: a)price elasticity of demand b)the cross price elasticity of demand c) if the income rises by 5%,…

A: Price elasticity of demand measures the responsiveness in quantity demanded of a commodity to a…

Q: If the demand for a good increases with a decrease in its pric the good is: A normal good. O An…

A: Demand reflects the different quantities demanded of a good or service at various prices during some…

Q: The law of demand states that if other factors remain constant there is Select one: a. An…

A: The demand curve shows the association between the amounts of commodity demanded by the consumer at…

Q: When and economist says the demand, for a product has increases, he or she mean that a) consumers…

A: When there is a change in the price of the good, it causes moment along the demand or supply curve…

Q: Thoroughly and completely explain thedifferences between a change in demand and achange in quantity…

A: Demand refers to a consumer's desire to purchase goods and services, at a particular price for a…

Q: In a certain market for sobolo,when the price of the drink was Ghc 3 the quantity demanded was…

A: Answer: Given, Price (P) Quantity (Q) Ghc 3 (P1) 12 bottles (Q1) Ghc 5 (P2) 6 bottles (Q2)…

Q: 2) Consider the demand function Q(P) = K P, where Q= quantity demanded, P- price, K and E are…

A: Introduction: The demand function depicts the relationship between the amount of a commodity sought…

Q: Suppose the own price elasticity of demand for good X is –3, its income elasticity is -3, its…

A: Price elasticity of demand measures the responsiveness in quantity demanded of a commodity to a…

Q: 4. If the demand for a good is inelastic, an increase in its price will cause the total expenditure…

A: Elasticity measures the responsiveness of quantity demanded to changes in price level. It is the…

Q: e) Compute the quantities demanded with the new prices and the original budget of 800TL. f) Using…

A: The motive of a rational consumer is to allocate his/her/their income among different goods and/or…

Q: Would you expect supply to play a more significantrole in determining the price of a basic necessity…

A: The price elasticity of demand is an economic statistic that measures the increase in the quantity…

Q: What demand structure do products which are urgently needed as necessities likely to possess. a.…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: Assume that a retailer sells 1000 six packs of Pepsi per day at at $3./6pk.  You, as an economic…

A: Cross price elasticity of demand measures the responsiveness of quantity demanded of good 1 with…

Q: When the price of hamburgers decreased by 20 percent, the quautity demanded of hambugers incrased by…

A: Price elasticity of demand refers to the change in the quantity demanded due to the change in the…

Q: o which side shifts the demand curve if consumers' incomes increase? Draw this curve.

A: Demand curve: It represents the relationship between the price and the quantity of the commodity…

Q: . Central Plaza conducted a study of the demand for men's ties. It found that the average monthly…

A: The demand function for the ties: D = 800 - 5P D = demand P = Price Given price = 100

Q: If the technology for producing is restricted, then there will be atn). Oa Expansion of Supply Ob…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: If you expect the price of ice cream to increase next week, your demand curve for ice cream will O…

A: Demand: - Demand is the relationship between the quantity demanded and the price of a good. There is…

Q: Your firm’s research department has estimated the income elasticity of demand for non fed ground…

A: The income elasticity of demand refers to the responsiveness of the quantity demand due to change in…

Q: 22. In the case of a Giffen good, the demand curve will be A. O Horizontal В. Downward to the right…

A: Giffen goods do not obey the law of demand, which states that as price increases, the quantity…

Q: Which one is NOT the reason for a rightward change in Demand for McDonald's (assumed to be a normal…

A: Market demand for a commodity can change as a result of a change in consumers income, their tastes…

Q: a) A consumer has a utility function given by U = x0.25 y0.75 He has an income of £100, the price of…

A: Utility is maximized at the point where slope of indifference curve given by ratio of marginal…

Q: measures how much a price change will cause QD or QS to change. * O Price Flexibility O Effective…

A: Demand is an economic principle that refers to a consumer's desire to buy goods and services as well…

Q: A demand schedule for a normal good is as follows: Price               Quantity demanded Rs.230…

A: The Law of demand states that when the prices of goods rises, keeping other things constant the…

Q: 39. If the demand for a good is inelastic, an increase in the price of the good will cause the total…

A: Elasticity is used to calculate the difference between the relative change in the amount demanded of…

Q: o help with his busy schedule, Joe drinks a lot of cappuccinos. In particular, his weekly demand for…

A: Since you have posted multi subparts question. So as per answering guidelines We will solve first…

Q: What is the current price of gasoline and how many gallons of gasoline do you currently buy per…

A: Given : Current Price of Gasoline- $2.53 Gallons of Gas per month - 72 gallons Change in price -…

Q: fer to the accompanying figure Assume the market is ongnally at point W. Movement to point X is the…

A: Equilibrium occurs at a point where the demand curve and the supply curve intersect each other.

Q: If macaroni and cheese is an inferior good and an increase in consumer income occurs, then which of…

A: The quantity demanded of a good is defined as the amount of the good consumers are willing and able…

Q: a. Describe according to demand theory why an inferior good or service you have consumed now or in…

A: Inferior good: These are the cheaply priced goods the demand for whom declines with a rise in the…

Q: Assuming that pizza is a normal good, if students' income at your college decreases substantially,…

A: Normal good: A normal good refers to that good whose demand increases with the rise in and income…

Q: 38. Which of the following is true? Oaf the cross-price elasticity of demand between two goods is…

A: Hey, Thank you for the question. According to our policy, we can only answer 1 question per session.…

Q: Determine how much the consumption of this good will change if: Othe price of good X increases by 5…

A: Percentage change in demand of a good due to change in price of the good itself is known as…

Q: tickets at a popular ski resort is given by: Q = 2,500 - 0.25p + 2palt - 4Piodging + 0.005Y p= price…

A: *answer:

Q: Suppose that an increase in the price of Tide pods results in an increase in demand for Gain laundry…

A: The relationship between two goods can be compared by analyzing the impact of change in the price…

Normal and Inferior Goods

Understanding a normal good and an inferior good is important because it tells us what will happen to demand different products during booms and recessions.