If the income elasticity of a product is greater than 1, which if the following is true? a) The product is an inferior good b) The product is a luxury c) The product is a necessity

Q: Identify two goods each whose demand exhibits (a) High price elasticity, (b) Low price elasticity,…

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

Q: Suppose the price elasticity of demand for beef is about 1.2. Other things equal, this means that a…

A: The demand for various goods, services, assets, securities, and other products comes from the…

Q: The cross elasticity of demand between siopao and catsup is negative. This tells us that___. a.…

A: Cross price elasticity of demand is the responsiveness of the quantity demanded of a good to a…

Q: Income elasticity of demand is the ratio of to a percentage change in the consumer's income, prices…

A: Alfred Marshall is the person who introduce the concept of elasticity in economics.

Q: Cross elasticity of demand is: C Negative for complementary goods C Negative for substitute goods C…

A: The cross-price elasticity of demand measures the responsiveness of demand for a good or service…

Q: Suppose potatoes are an inferior good. Then their income elasticity is a. greater than 1. b. between…

A: The income elasticity of demand measures the responsiveness of changes in the quantity demanded that…

Q: A good has income elasticity of -0.9. Is this good normal or inferior

A: Income elasticity of demand is defined as the degree of responsiveness of quantity demanded of a…

Q: If the income elasticity is greater than one, the commodity is

A: To find:  If the income elasticity is greater than one, the commodity is

Q: His income elasticity of demand for petrol is

A: Income elasticity of demand measures how responsive the demand for a good or service is to changes…

Q: If the cross elasticity of demand for two goods, A and B, is -5,0, then this implies that these…

A: Cross price elasticity of demand measures the responsiveness in quantity demanded of a good to a…

Q: Beef is a normal good. There is increase in income and, as a result, the total revenues earned by…

A: Here, it is given that an increase in income of the people increases total revenue of beef producers…

Q: If the cross-price elasticity of demand between lettuce and salad dressing is negative, then when…

A: Cross elasticity of demand (XED) is the responsiveness of a percentage change in quantity demanded…

Q: If the cross-price elasticity of demand between blueberries and yogurt is negative, then the two…

A: Cross price elasticity of demand measure the change in quantity demanded of product or service in…

Q: The demand equation for a good is given by the equation: Qx = 520 – 20P, + 0.6 Y + 2.9P,y. Find the…

A: The price elasticity of demand measures the % change in the quantity demanded due to the % change in…

Q: a good tends to have a small price elasticity of demand if

A: In economics, goods are the final products that are consumed by the people.

Q: If the individual demand function for good X is given by X - 100-2px-4py +I, where px= Py = $20 and…

A: Cross price elasticity of demand shows the change in price of one good will change in demand of…

Q: Suppose a 4 percent increase in income results in a 2 percent decrease in the quantity demanded of a…

A: Income elasticity of demand measures the responsiveness of percentage change in the demand due to…

Q: The income elasticity of demand with a value more than one indicates that the demand is…

A: The income elasticity of demand measures the proportionate change in quantity demanded of a good due…

Q: Suppose a good has a demand curve given by Q = 20 - 8 × P. What is the price elasticity of demand if…

A:

Q: An individual spends all his income on two goods X and Y. If with the rise in price of good X, the…

A: Price elasticity of demand is a measure which measures the degree of responsiveness of demand for a…

Q: If a good is a luxury, its income elasticity of demand is

A: To find : What will be income elasticity of demand.

Q: When the value of income elasticity of demand is greater than zero, the good is called normal good.…

A: Normal goods are those goods which has positive relationship between the quantity demanded of good…

Q: If the income elasticity of demand for a good is 1.25, a 10 percent increase in income results in a…

A: Income elasticity of demand is refers to the ratio of percentage change in quantity demanded of…

Q: True/False When income elasticity is greater than 1 than that good is most probably a luxury.

A: # A good which has an elasticity of demand greater than 1 is having a really high elastic demand.…

Q: elasticity

A: The ep depicts the % of quantity demanded change to % of price change. It can measure through…

Q: If the cross-price elasticity between two goods is negative, these goods are a. Inferior. b.…

A: Separate usage of the complimentary good has almost zero benefit, however if associated with some…

Q: The income elasticity of demand for an inferior good is A) positive. B negative.

A: Answer:  (B) Negative Explanation: The income elasticity for an inferior good is negative. It means…

Q: Positive income elasticity implies that as income rises, demand for the commodity A. Rises B. Falls…

A: So accordingly the positive income elasticity are the normal goods as relatively with the rise in…

Q: If the quantity demanded from good X has increased from 40 to 50 units as a result of the increase…

A: quantity demanded from good X has increased from 40 to 50 units due to this increase in the consumer…

Q: A good is normal if the sign on the income elasticity formula is Greater than 1. Negative. Positive.…

A: A normal good is defined as a good the demand for which rises when price falls and vice versa.

Q: Calculate the income elasticity of demand for the following examples and state whether they are a…

A: Income elasticity of demand measures the percentage change in the demand of a good due to the…

Q: when the income elasticity of demand is greater than unity, the commodity is  a. A non-related…

A: Income elasticity of demand shows how much the quantity demanded of a good changes when the income…

Q: A consumer's weekly income is $700, and the consumer buys 7 bars of chocolate per week. When weekly…

A: Income elasticity of demand depicts how much consumer responds with the change in his/her income.

Q: If the cross elasticity of demand for two goods, A and B, is +5,0, then this implies that these…

A: The concept of cross elasticity of demand is used to explain percentage change in quantity demanded…

Q: If income elasticity for a good is 2, then it is a

A: Find:  If income elasticity for a good is 2, then it is a

Q: If a 10 percent increase in price causes a 3 percent decrease in quantity demanded, Which of the…

A: Concept: The elasticity of demand refers to the change in the quantity demanded due to a change in…

Q: If the demand for chocolate increases by 20% in response to a price discount of 30%. How much is the…

A: Given information, Percentage change in quantity demanded of chocolate: 20% Percentage change in…

Q: Income effects depend on the income elasticity of demand for each good that you buy. If one of the…

A: Income elasticity of demand: It is the measurement of the change in the quantity demanded of a…

Q: A consumer’s demand curve for X is given by the equation P=100- square root of Q. Calculate his…

A: Demand curve shows the relationship between quantity demanded and price. Demand curve is downward…

Q: If the income elasticity of demand for tea is 1,3, then this implies that tea is: (2) (1) An…

A: Income elasticity of demand estimates the connection between the shopper's pay and the interest for…

Q: Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its…

A: Part 1) When price of good X decreases by 5% , consumption of good X will increase by 15%

Q: The income elasticity of demand with a value between zero and one indicates that the demand is…

A: Income elasticity of demand depicts how much consumer responds with the change in his income

Q: If the cross elasticity of demand between bread rolls and cheese is –3,0, this implies that these…

A: Cross price elasticity is the responsiveness of quantity demanded of one good when price of another…

Q: If the cross elasticity of demand for two goods, A and B, is +5,0, then this implies that these…

A: The concept of cross elasticity of demand is used to explain percentage change in quantity demanded…