EBK ECONOMICS: PRINCIPLES AND POLICY
13th Edition
ISBN: 9780100605930
Author: Blinder
Publisher: YUZU
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Question
Chapter 5, Problem 3TY
To determine
Identify the normal goods and inferior goods.
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Students have asked these similar questions
Cheese and buns are comements. What will happen if cheese becomes less expensive?
When consumers' incomes increased 10 percent, the quantity of milk bought increased 5 percent. This result means
A. milk is a luxury.
B. milk is a necessity.
C. the demand for milk is income elastic.
D. milk is an inferior good.
Think Critically
• There are factors/determinants influencing the price of a product.
Which is the MOST and LEAST important among the factors
influencing the price of a product and why? Cite 5 examples each.
Chapter 5 Solutions
EBK ECONOMICS: PRINCIPLES AND POLICY
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Similar questions
- 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?arrow_forwardSuppose that a consumer spends a fixed amount of income per month on the following pairs of goods: a.tortilla chips and salsab.tortilla chips and potato chips. movie tickets and gourmet coffee d.travel by bus and travel by subway If the price of one of the goods increases, explain the effect on the quantity demanded of each of the goods. In each pair, which are likely to complement and which are likely to be substituted?arrow_forwardWhich of the following pairs of goods are most likely substitutes? a. Cola and lemon lime soda b. Lettuce and salad dressing c. Peanut butter and gasoline d. Compact discs and compact disc playersarrow_forward
- Give 5 examples each of inferior goods and normal goodsarrow_forwardMaria graduates from college and her income increases by $45,000. Nothing else changes. Maria decreases the quantity of donuts and pretzels that she buys and increases the quantity of ski trips that she buys. How would Maria describe these goods? For Maria, A. donuts and ski trips have become substitutes B. ski trips and pretzels are normal goods C. donuts and pretzels have become complements OD. ski trips are normal goodsarrow_forwardWhat is consumerism?arrow_forward
- What is the law of demand and how does it explain consumer behavior in response to changes in the price of a good or service?arrow_forwardIf Goods are not rationed according to price, what happens?arrow_forwardIdentify the type of goods which have zero cross elasticity of demand. a. Normal goods b. Independent goods c. Dependent goods d. Substitute goodsarrow_forward
- If price will change, holding other factors constant, the following will happen in the market for a consumerSingle choice. a. There will be a change in quantity demanded. b. There will be a change in quantity supplied. c. There will be a change in demand. d. There will be a change in supply.arrow_forwardkindly solve the questions i postedarrow_forwardQuestion 3arrow_forward
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