Calculate the income elasticities of demand

Assignment Help Business Economics

Reference no: EM131096030

Calculate the income elasticities of demand for the following:

a. Income rises by 5 percent; demand decreases by 5 percent.

Instructions: Round your answer to 2 decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. .

b. Income rises from $75,000 to $90,000; demand decreases (at a constant price) from 55 to 50.

Instructions: Round your answer to 2 decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. .

Reference no: EM131096030

Questions Cloud

Benefits and limitations of communicating with e-mails : Discuss the benefits and limitations of communicating with e-mails among team members. How would you design an office space that improves and fosters communication?

What sort of challenges did you face with telecommuting : Is there anyone who has good experience with telecommuting? If so, what sort of challenges did you face? How would you supervise someone who is a telecommuter effectively?

What are the biggest risks to the child : What are the biggest risks to the child?

Disappointing sales and cash generation in the second : The 2014/15 annual report for Dick Smith Holdings, a major electronics retailer, published in August 2015 was upbeat about the prospects for the company and yet only 5 months later it went into administration.

Calculate the income elasticities of demand : Calculate the income elasticities of demand for the following: Income rises by 5 percent; demand decreases by 5 percent. Income rises from $75,000 to $90,000; demand decreases.

Farmer uses three inputs to produce vegetables : A farmer uses three inputs to produce vegetables: land, labor, and capital. The production function for the farm exhibits diminishing marginal rate of technical substitution. What happens to the cost-minimizing quantities of labor and capital for a g..

Why would be opposed to foreign aid in support of free trade : Kenyan economics expert James Shikwati says the aid to Africa does more harm than good. He is an avid proponent of globalization and argues that Western development policy in Africa is disastrous. Why would Shikwati be opposed to foreign aid in suppo..

Calculate the opportunity cost of capital for mark : Suppose Mark invests a sum of $100,000 in a new venture. To fund his investment, Mark withdraws $50,000 from a savings account paying 10% per year and uses the proceeds from a bond that has just matured worth $50,000. If he had reinvested the proceed..

Two inputs to produced bottles of the soft drink sludge : A bottling company uses two inputs to produced bottles of the soft drink Sludge: bottling machines (K) and and workers (L). The isoquants have the usual smooth shape. The machines cost $1000 per day to run (r), and the workers earn $200 per day (w).

User Account

All Pages