Explain the income elasticity of demand

Reference no: EM13176743

1. If the income elasticity of demand for lard is -3.00, that means that:

a.lard is a substitute for butter

b.lard is a normal good

c. lard is an inferior good

d. more lard will be purchased when its price falls

2.Suppose that a 20 percent increase in the price of normal good Y causes a 10 percent decline in the quantity demanded of normal good X. The coefficient of cross elasticity of demand is:

a.negative and therefore these goods are substitutes

b.negative and therefore these goods are complements

c.positive and therefore these goods are substitutes

d.positive and therefore these goods are complements

Reference no: EM13176743

Questions Cloud

What is the net cash flow of the project for the years : What is the NPV of the project? (Do not include the dollar sign ($).Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations.

State the energy levels keeping the temperature fixed : increased the space between the energy levels keeping the temperature fixed or (ii) increased the temperature and keeping the energy levels fixed.

Explain cross-price elasticity of demand : You are the manager of a firm that receives revenues of $40,000 per year from product X and $70,000 per year from product Y. The own price elasticity of demand for product X is -1.5, and the cross-price elasticity of demand between product Y and X..

Improve its production efficiency : Compute NVP.(Do not include the dollar sign ($).Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations.

Explain the income elasticity of demand : Suppose that a 20 percent increase in the price of normal good Y causes a 10 percent decline in the quantity demanded of normal good X. The coefficient of cross elasticity of demand is:a.negative and therefore these goods are substitutes

State and draw a titration curve for both of these peptides : Draw a titration curve for both of these peptides. Be sure to label the axes properly, indicate the pKa values, the equivalence points and the buffering regions.

Analyze the accounting for corporation requirements : Analyze the accounting for corporation requirements related to stock valuation, dividends, and retained earnings and determine how to value investments and how to report them based on that valuation.

State the nonoxidative decarboxylation of oxalosuccinate : given that Go = 5.02 kcal/mol for the complete reaction catalyzed by isocitrate dehydrogenase and that Go = 4.71 kcal/mol for the nonoxidative decarboxylation of oxalosuccinate, oxalosuccinate + H+ ----> CO2 + a-ketoglutartate.

Indicate dollar amounts to be reported as current liability : Frederic Chopin Corporation is preparing its December 31, 2008, balance sheet. The following items may be reported as either a current or long-term liability.

User Account

All Pages