Good U has a price elasticity of demand of 2.5 and Good Y has a price elasticity of demand of 0.7. Which of the following statements below describes these elasticities? U has fewer substitutes than Y. O The elasticity of U is likely to be a short-run measure and the elasticity of Y is likely to be a long-run measure. O U is a luxury and Y is a necessity. O Uis a good when there is an increase in income and Y is a good when there is a decrease in income.

Good U has a price elasticity of demand of 2.5 and Good Y has a price elasticity of demand of 0.7. Which of the following statements below describes these elasticities? U has fewer substitutes than Y. O The elasticity of U is likely to be a short-run measure and the elasticity of Y is likely to be a long-run measure. O U is a luxury and Y is a necessity. O Uis a good when there is an increase in income and Y is a good when there is a decrease in income.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...

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