When Marvan received a promotion at work, his income rose by 20%, and he decided to increase his visits to the movies. If his income elasticity of demand for movies is 0.6, he will watch: O a. 20% more movies O b. 12% more movies O c. 6% more movies Od. 6% more movies and 14% more of other goods The price of Good A increases by 70%, causing the quantity consumed of Good B to increase by 50%. If everything else is held constant, we can say that Good A and Good B are: O a. substitutes O b. inferior O c. complements d. normal
When Marvan received a promotion at work, his income rose by 20%, and he decided to increase his visits to the movies. If his income elasticity of demand for movies is 0.6, he will watch: O a. 20% more movies O b. 12% more movies O c. 6% more movies Od. 6% more movies and 14% more of other goods The price of Good A increases by 70%, causing the quantity consumed of Good B to increase by 50%. If everything else is held constant, we can say that Good A and Good B are: O a. substitutes O b. inferior O c. complements d. normal
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 7PA: Maria has decided always to spend one third of her income on clothing. a. What is her income...
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