EBK ECONOMICS
13th Edition
ISBN: 8220106799642
Author: PARKIN
Publisher: PEARSON
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Question
Chapter 8, Problem 13SPA
To determine
Change in consumer choices.
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If iPad is considered a normal good, when income in Camarillo goes up, the effect on iPad in Camarillo will be:
Group of answer choices
no change in the demand.
an increase in the demand.
an increase in the supply.
a decrease in the demand.
A consumer is choosing between magazines and books. His set of consumer
optimums are shown on the graph to the right.
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Consumer income allocated for these two goods is equal to $150. The price of
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magazines (P,) is equal to $5.00.
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How do these changes in the price of books affect the demand for magazines?
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You have just opened a new grocery store. Every item you carry is generic (generic beer, generic bread, generic chicken, etc.). You recently read an article in the Wall Street Journal reporting that the price of recreation is expected to increase by 15 percent. How will this affect your store’s sales of generic food products?
Chapter 8 Solutions
EBK ECONOMICS
Ch. 8.1 - Prob. 1RQCh. 8.1 - Prob. 2RQCh. 8.1 - Prob. 3RQCh. 8.1 - Prob. 4RQCh. 8.2 - Prob. 1RQCh. 8.2 - Prob. 2RQCh. 8.2 - Prob. 3RQCh. 8.2 - Prob. 4RQCh. 8.3 - Prob. 1RQCh. 8.3 - Prob. 2RQ
Ch. 8.3 - Prob. 3RQCh. 8.3 - Prob. 4RQCh. 8.3 - Prob. 5RQCh. 8.4 - Prob. 1RQCh. 8.4 - Prob. 2RQCh. 8.4 - Prob. 3RQCh. 8.4 - Prob. 4RQCh. 8 - Prob. 1SPACh. 8 - Prob. 2SPACh. 8 - Prob. 3SPACh. 8 - Prob. 4SPACh. 8 - Prob. 5SPACh. 8 - Prob. 6SPACh. 8 - Prob. 7SPACh. 8 - Prob. 8SPACh. 8 - Prob. 9SPACh. 8 - Prob. 10SPACh. 8 - Prob. 11SPACh. 8 - Prob. 12SPACh. 8 - Prob. 13SPACh. 8 - Prob. 14SPACh. 8 - Prob. 15SPACh. 8 - Prob. 16APACh. 8 - Prob. 17APACh. 8 - Prob. 18APACh. 8 - Prob. 19APACh. 8 - Prob. 20APACh. 8 - Prob. 21APACh. 8 - Prob. 22APACh. 8 - Prob. 23APACh. 8 - Prob. 24APACh. 8 - Prob. 25APACh. 8 - Prob. 26APACh. 8 - Prob. 27APACh. 8 - Prob. 28APACh. 8 - Prob. 29APACh. 8 - Prob. 30APACh. 8 - Prob. 31APACh. 8 - Prob. 32APA
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Similar questions
- How does a consumer’s optimal choice of goods change if all prices and the consumer’s income double?arrow_forwardPrice of Can of Beer = $0.50 Total Utility Price of Slice of Pizza = $1.00 Total Utility Slices per Week Cans per Week 1 32 15 63 29 3 42 91 4 54 115.75 65 136 6. 75.75 154 86 171 8. 96 8 187 9. 105 201 10 113 10 213 If this consumer only has $10.00 to spend on beer and pizza a week, and is currently consuming 7 slices of pizza and 6 cans of beer per week, what should this consumer do to maximize his utility? Buy only beer. Buy only pizza. Buy more beer and less pizza. Buy more pizza and less beer. 234 567009arrow_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_forward
- A consumer is currently purchasing three pairs of jeans and five T-shirts per year. The price of jeans is $30, and T-shirts cost $10. At the current rate of consumption, the marginal utility of jeans is 60, and the marginal utility of T-shirts is 30. Is this consumer maximizing his or her utility? Would you suggest that he buy more jeans and fewer T-shirts, or more T-shirts and fewer jeans?arrow_forwardHow do you think income elasticity affects a normal good versus an inferior good?arrow_forwardThe graph shows the budget line for a consumer who only buys cookies and magazines. If the consumer's income is $20, what is the price of a Magazine? 24 20 16 4 2 4 6 8 10 12 Magazines (number per week) dollar(s) Cookies (number per week)arrow_forward
- Suppose a person allocates a given budget between food and clothing. If food is an inferior good can you tell whether clothing is inferior or normal? Explain.arrow_forwardMarie has a weekly budget of $24, which she likes to spend on magazines and pies. If the price of a magazine is $4 each, what is the maximum number of magazines she could buy in a week?arrow_forwardSuppose John decides to buy 4 units of food and 4 units of clothing with his $12 budget. Would his marginal utility per dollar spent on food be greater than or less than his marginal utility per dollar spent on clothing? What does this tell you about how he should substitute food for clothing if he wanted to increase his utility without spending any more money?arrow_forward
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