When Alex's income was $3,000, he bought 4 bagels and 12 donuts a month. Now his income is $5,000 and he buys 8 bagels and 6 donuts a month. Calculate Alex's income elasticity of demand for :Bagels. Dounts.

When Alex's income was $3,000, he bought 4 bagels and 12 donuts a month. Now his income is $5,000 and he buys 8 bagels and 6 donuts a month. Calculate Alex's income elasticity of demand for :Bagels. Dounts.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 8SQP: Charles loves Mello Yello and will spend 10 per week on the product no matter what the price. What...

See similar textbooks

Related questions

Q: For wine, if income goes up by 1%, the demand for wine goes up by 3%. That means that the income…

A: find below the answer.

Q: The income elasticity of Abigail’s demand for CDs is 0,75. For Abigail Cds are a normal good or an…

A: There is a form of government which is known as democratic government.It has been seen that there is…

Q: Suppose that Bobo purchases 1 pizza per month when the price is $19 and 3 pizzas per month when the…

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

Q: When Ahmed's income was $2,00, he bought 6 bagels and 10 donuts a month. Now his J income is $1,500…

A: Income elasticity of demand is used to find the ratio between relative change in quantity demanded…

Q: [MUST SHOW WORK] Jada used to pay $20 for a book. She bought 4 books per month. When the price of a…

Q: Nadzif always spends one-fifth of his income on food. Calculate his income elasticity of demand by…

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

Q: Jimmy's income is $1200 per month. At a price of $7 per sandwich, Jimmy buys 7 sandwiches. Jimmy's…

A: The demand for a good, or a service is described as the total amount of that good, or service which…

Q: Fill in the blank What does the income elasticity of demand measures_______________________.

A: Elasticity is a term used in economics to describe how the aggregate quantity demanded or quantity…

Q: The following information provided for Tony Romo's income and expenditures.…

A: Formula:Income elasticity of demand for steak=% change in quantity demanded for steak% change in…

Q: Zhu spends exactly $50 on coffee each month. The price of tea decrease, while the price of coffee…

A: Here, it is given that Zhu spends exactly $50 on coffe in every month.

Q: Charles loves Mello Yello and will spend $10 per week on the product no matter what the price. What…

A: Elasticity of demand: Elasticity of demand refers to the responsiveness of change in quantity…

Q: For which product is the income elasticity of demand most likely to be negative? a. laptops b.…

A: In a market, one of the factors that affect the demand for a product is income elasticity. Income…

Q: What informtion does income elasticity provides ? Explain with the help of diagram different types…

A: Income elasticity of demand(Ied) is the demand's sensitivity for some good to a change in…

Q: Explain and calculate the impact on the quantity demanded of beer if the income elasticity is 1.5…

A: Given income elasticity = 1.5 Increase in income = 10 %

Q: by using midpoint formula,calculate the elasticity of orange juice demanded. P(1)=1,49 per qt…

A: 1 Quarter = 3 Months Price (Per quarter) Quantity demanded (Per quarter) Initial 149 42…

Q: George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50 he…

A: Elasticity of demand = % change in quantity demanded / % change in price

Q: Discuss any four (4) factors that influence elasticity of demand

A: Demand is the willingness and ability of consumers for consuming and buying goods and services at…

Q: Becky only eats out at Macaroni Grill, and she eats out three times per month. She receives a raise…

A: Answer: Given, Income level (per year) Quantity (or eating out per month) $31,900 (Y1) 3 (Q1)…

Q: Compute the following word problems and identify what type of elasticity is each. Show your PED of…

A: Point elasticity formula for PED = [(Q1 - Q0) / Q0] / [(P1 - P0) / P0] Midpoint formula for PED =…

Q: Heidi spends all of her income on going to movies, regardless of her income level or the price of…

A: Meaning of Price Elasticity of Demand: The condition in which the quantity demand for a certain…

Q: 3.When Judy’s income increased from $130 to $170 a week, she increased her demand for concert…

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

Q: Amir is selling lemonade this summer. He says that a 5% decrease in the price of a lemonade will…

A: Price elasticity of demand show the change of demand due to change in price , so here we calculate…

Q: You have just opened a new grocery store. Every item you carry is generic (generic beer, generic…

A: The increase in the price of recreation by = 15% Cross price elasticity = 0.15

Q: Which of the following goods would you expect to have the lowest price elasticity of demand? O…

A: Price elasticity of demand judges the responsiveness i.e it look after the sensitivity of quantity…

Q: Tracey usually pays a price between $6 and $10 per pound of rice. Her monthly total expenditure on…

A: The elasticity measures the percentage change in demand for a good given a change in the price of…

Q: 1. After Peter's income increased from $100to $200, his purchases of tuna fish decreased from 5 cans…

A: A good's price elasticity of demand is a measure of how sensitive the quantity demanded is to its…

Q: When Alex's income increased from $5,000 to $7,000, he increased his consumption of bagels from 6 to…

A: ∆Q=4 ∆I=2000 I0=5000 Q0=6

Q: At a specific point on the demand curve for backpacks, the elasticity of demand is calculated to be…

A: The economics as a study is based upon the idea that the resources which are available with the…

Q: You have data on Meena's quantity demanded for craft beer and their income. According to this data…

A: Given The Meena's income falls by 7%. The change in the quantity demanded for beer is 11%. The…

Q: For each scenario, calculate the income elasticity of demand, determine whether the good is inferior…

A: income elasticity refers or show the change in demand due to the change in elasticity , which means…

Q: Income elasticity: Judy's income has increased from $10,000 to $12,000. Judy increased her demand…

A: Given, The original income= I1 = $10,000 The new income= I2 = $12,000 Percentage change in the…

Q: For each scenario, calculate the income elasticity of demand, determine whether the good is inferior…

A: Demand that is highly and favourably responsive to a change in income is said to be "income…

Q: Why is a more narrowly defined goods (pizza) likely to have a greater elasticity demand than a more…

A: Price elasticity of demand states the change in the quantity being purchased of a product with…

Q: According to the income elasticity formula below, Income elasticity of demand E% change in quentity…

A: Income elasticity of demand: - Income elasticity of demand measures the responsiveness of change in…

Q: Difference between income elasticity and cross elasticity of Demand ?

A: In Microeconomics, the notion of elasticity is used to measure the variability registered in…

Q: For which product is the income elasticity of demand most likely to be negative? A. Bread B. Gas C.…

A: Income elasticity of demand (Yed) is the ratio of %change in Qd(quantity demanded) of a product and…

Q: demand for following product is elastic or inelastic

A: Q4)

Q: Briefly explain why Income Elasticity of Demand (YED) is important for whether businesses choose to…

A: Hello student. I am answering the following question :- Briefly explain why Income Elasticity of…

Q: Find the attached file.

A: The income elasticity of demand is used to determine the responsiveness of change in the demand for…

Q: Elasticity of supply depends on the ease of changing the amount of an item supplied. 8. Anton has 4…

A: If the price(P) of a good(say X) rises and the seller of X is easily able to supply more quantity of…

Q: Attina's sister, Aquata always spends 20% of her income on boots. Assume that her income increases…

A: Income Elasticity of Demand measures the percentage change in quantity demanded of a good or service…

Q: Fadzi's demand curve for food is Q=10-2p. Her price elasticity of demand for food at price P*equals…

A: The elasticity of demand demonstrates the degree of responsiveness in quantity demanded of that…

Q: Nadzif always spends one-fifth of his income on food. Calculate his income elasticity of demand (use…

A: Income elasticity of demand is given as the change in quantity demanded when income changes ie Ed= %…

Q: Alex's income has increased from 3000Php. to 5000Php. Alex increased his consumption of CD from 4 to…

A: Given: Income increases from 3000Php. to 5000Php. Therefore, I1=3000 I2=5000 Consumption of Cake…

Q: Cayden receives a large raise at work and as a result, begins to buy fewer top ramen dinners. We can…

A: The equilibrium price and quantity of a good sold in the market are determined by the forces of…

Q: What does price elasticity of demand measure?

A: To find: What does price elasticity of demand measure?

Q: What does Price Elasticity of Demand Measure?

A: Price elasticity of demand: The price elasticity of demand shows the responsiveness of change in the…

Question

When Alex's income was $3,000, he bought 4 bagels and 12 donuts a month. Now his income is $5,000 and he buys 8 bagels and 6 donuts a month. Calculate Alex's income elasticity of demand for

:Bagels.

Dounts.

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Maria has decided always to spend one third of her income on clothing. a. What is her income elasticity of clothing demand? b. What is her price elasticity of clothing demand? c. It Marias tastes change and she decides to spend only one fourth of her income on clothing, how does her demand curve change? What is her income elasticity and price elasticity now?
Economists define normal goods as having a positive income elasticity. We can divide normal goods into two types: Those whose income elasticity is less than one and those whose income elasticity is greater than one. Think about products that would fall into each category. Can you come up with a name for each category?
If the elasticity of demand for hamburgers equals 21.5 and the quantity demanded equals 40,000, predict what will happen to the quantity demanded of hamburgers when the price increases by 10 percent. If the price falls by 5 percent, what will happen?
(Other Elasticity Measures) Complete each of the following sentences: a. The income elasticity of demand measures, for a given price, the __________ in quantity demanded divided by the __________ income from which it resulted. b. If a decrease in the price of one good causes a decrease in demand for another good, the two goods are __________. c. If the value of the cross-price elasticity of demand between two goods is approximately zero, they are considered __________.
The equation for a demand curve is P=483Q. What is the elasticity in moving from quantity of 5 to a quantity of 6?
The president of Tucker Motors says, Lowering the price wont sell a single additional Tucker car. The president believes that the price elasticity of demand is a. perfectly elastic. b. perfectly inelastic. c. unitary elastic. d. elastic.
Income Effects depend on the income elasticity of demand for each good limit you buy. If one of the goods you buy has a negative income elasticity, that is, it is an inferior good, what must be true of the income elasticity of the other good you buy?
What is the formula for the income elasticity of demand?
The avenge annual income rises from 25,000 to 33,000, and the quantity of bleed consumed in a year by the avenge person falls from 30 loaves to 22 loaves. What is the income elasticity of bread consumption? Is bread a normal or an inferior good?
The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per month over the past year. Recently, its closest competitor, Decayfigh ter, reduced the price of its electric toothbrush from $35 to $30. As a result, Stopde cays sales declined by 1,500 units per month. What is the arc cross elasticity of demand between Stopdecays toothbrush and Decayfighters toothbrush? What does this indicate about the relationship between the two products? If Stopdecay knows that the arc price elasticity of demand for its toothbrush is 1.5, what price would Stopdecay have to charge to sell the same number of units as it did before the Decayfighter price cut? Assume that Decayfighter holds the price of its toothbrush constant at $30. What is Stopdecays average monthly total revenue from the sale of electric toothbrushes before and after the price change determined in part (b)? Is the result in part (c) necessarily desirable? What other factors would have to be taken into consideration?