EBK FOUNDATIONS OF ECONOMICS
8th Edition
ISBN: 8220103632225
Author: PARKIN
Publisher: PEARSON
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Chapter 13, Problem 10IAPA
To determine
To compare:
The
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Total utility rise from 10 to 18 and the total quantity rise from 1 to 2
Calculate the marginal utility
Suppose a consumer had an income of $100 and spends $50 on potatoes. Suppose now that his income goes up to $150, and his spending on potatoes goes up to $100. No prices have changed (so the quantity of potatoes purchased doubled). Compute the consumer’s income elasticity for potatoes.
QUESTION 20
Justin has a subscription to both Hulu and YouTube TV. He uses Hulu to catch up on shows and then streams the new seasons on YouTube TV. When the price of
Hulu increased, he cancelled subscriptions to both. Camilla only has a subscription to Hulu. When the price of Hulu increased, she cancelled the subscription to
Hulu and switched to a subscription to YouTube TV. When considering the cross-price elasticity of demand for Hulu and YouTube TV,
O Camilla's would be negative and Justin's would be positive.
O Camilla's would be zero and justin's would be large and positive.
Camilla's would approach infinity and Justin's would be zero,
O Camilla's would be positive and justin's would be negative.
Chapter 13 Solutions
EBK FOUNDATIONS OF ECONOMICS
Ch. 13.A - Prob. 1SPPACh. 13.A - Prob. 2SPPACh. 13.A - Prob. 3SPPACh. 13.A - Prob. 4SPPACh. 13.A - Prob. 5SPPACh. 13.A - Prob. 1IAPACh. 13.A - Prob. 2IAPACh. 13.A - Prob. 3IAPACh. 13.A - Prob. 4IAPACh. 13 - Prob. 1SPPA
Ch. 13 - Prob. 2SPPACh. 13 - Prob. 3SPPACh. 13 - Prob. 4SPPACh. 13 - Prob. 5SPPACh. 13 - Prob. 6SPPACh. 13 - Prob. 7SPPACh. 13 - Prob. 8SPPACh. 13 - Prob. 9SPPACh. 13 - Prob. 10SPPACh. 13 - Prob. 1IAPACh. 13 - Prob. 2IAPACh. 13 - Prob. 3IAPACh. 13 - Prob. 4IAPACh. 13 - Prob. 5IAPACh. 13 - Prob. 6IAPACh. 13 - Prob. 7IAPACh. 13 - Prob. 8IAPACh. 13 - Prob. 9IAPACh. 13 - Prob. 10IAPACh. 13 - Prob. 1MCQCh. 13 - Prob. 2MCQCh. 13 - Prob. 3MCQCh. 13 - Prob. 4MCQCh. 13 - Prob. 5MCQCh. 13 - Prob. 6MCQCh. 13 - Prob. 7MCQ
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- Q2arrow_forwardAlex's income has increased from 3000Php. to 5000Php. Alex increased his consumption of CD from 4 to 8 a month and decreased his consumption of cakes from 12 to 6 a month. Calculate his income elasticity of demand for Cake.arrow_forwardMr. Ali was buying 10 kg of sugar when the price of one kg was Rs 100. Now the price has come down to Rs 75 and he is buying 15 kg of sugar. Find the point elasticityarrow_forward
- Q56arrow_forwardJohnny buys 5 hot dogs per month when he makes $12 per hour. He buys 8 hot dogs per month when he makes $10 per hour. It follows that Johnny's income elasticity for hot dogs is [Select] Y and Johnny considers hotdogs to be a(n) [ Select] good.arrow_forwardJames consumes two types of goods: fruit and clothing. Fruits cost him $ 2 per unit, clothing costs $ 25 per unit, and his income is $ 1,000. He always spends 40% of his income on fruit, regardless of the price of fruit and clothing, as well as his income. a. What is the cross-price elasticity of its demand for fruit relative to the price of clothing? b.What is the elasticity-income of its fruit demand? Detail your answers.arrow_forward
- Question 3 When her income falls from $50,000 to $20,000, Arianna increases her monthly purchase of hamburger from 20 pounds to 35 pounds. From the midpoint method, Arianna's income elasticity of demand for hamburgers is O -1.57. O -0.63. 1.57. O 0.54. -0.85.arrow_forwardNadia consumes two goods, food and clothing. The price of food is $2, the price of clothing is $5, and her income is $1,000. She always spends 40% of her income on food regardless of the price of food, clothing, or her income. What is her price elasticity of demand for food? What is her cross-price elasticity of demand for food with respect to clothing? What is her income elasticity of demand for food?arrow_forwardNadia consumes two goods, food and clothing. The price of food is $2,the price of clothing is $5,and her income is $1,000. Nadia always spends 40 percent of her income on food regardless of the price of food, the price of clothing, or her income.What is her price elasticity of demand for food?arrow_forward
- Becky only eats out at Macaroni Grill and eats out three times per month. She receives a raise from $33,200 to $33,500 and decides to eat out five times per month. Use the midpoint method to calculate the monthly income elasticity of demand for eating out. Round your answer to two decimal places. income elasticity of demand: This good is an inferior good. a luxury good. a normal good.arrow_forwardCan i get some help?arrow_forwardSuppose the price elasticity of demand for cereal is - 0.82. If so, then the demand for cereal is In another example, assume the price elasticity of demand for a particular magazine is - 0.64. The demand for the magazine is Click to select your answer(s).arrow_forward
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