Alexander studies away from home while at school he spends

Reference no: EM13378259

Alexander studies away from home. While at school, he spends all his income on air travel and economics textbooks. In a diagram with air-travel as the x-axis good, as pair increases while ptext remains unchanged, Alexander's price consumption path is horizontal.
a. How does Alexander's expenditure on air travel respond to changes in pair? Show that his demand for air travel is inversely proportional to pair.
b. What is the price elasticity of the demand for air travel?
c. Are textbooks complements or substitutes for air travel?

Reference no: EM13378259

Questions Cloud

A consumer of two goods faces positive prices for both : a consumer of two goods faces positive prices for both goods and has positive income. her preferences over consumption

Suppose the ratio of deposits that banks hold in the form : suppose the ratio of deposits that banks hold in the form of reserves is 7 percent. suppose further that people want to

Jen likes only chocolate and economics textbooks her demand : jen likes only chocolate and economics textbooks. her demand functions for chocolate and textbooks are given byqc m pc

Lisa and mark the third generation of the gilbert family : lisa and mark the third generation of the gilbert family had successfully taken the family business from one small

Alexander studies away from home while at school he spends : alexander studies away from home. while at school he spends all his income on air travel and economics textbooks. in a

Suppose the position of political candidates on all issues : suppose the position of political candidates on all issues can be ranked on a scale ranging from conservative to

The demand and supply curves for fixed gear bikes in : the demand and supply curves for fixed gear bikes in hipsterland are qd 225 ?1.5? p and qs 1.5? p ? 45 respectively.1

Chuck michael and hakeem are three retired basketball : chuck michael and hakeem are three retired basketball players. they determine that in madison there is demand for

A needy family of a mother and three children currently : a needy family of a mother and three children currently receives cash benefits that average 12 per day. the mother of

User Account

All Pages