Ceb's income has just risen from $950 per week to $1,050 per week. As a result, she decides toincrease the number of movies she attends each month by 5 percent. Her demand for movies is enelastic because
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Ceb's income has just risen from $950 per week to $1,050 per week. As a result, she decides toincrease the number of movies she attends each month by 5 percent. Her demand for movies is enelastic because
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- Income Effects depend on the income elasticity of demand for each good limit you buy. If one of the goods you buy has a negative income elasticity, that is, it is an inferior good, what must be true of the income elasticity of the other good you buy?Plot the price and quantity data given in the demand schedule of exercise 1. Put price on the vertical axis and quantity on the horizontal axis. Indicate the price elasticity value at each quantity demanded. Explain why the elasticity value gets smaller as you move down the demand curve.Suppose Sally buys exactly five bars of English toffee each week, regardless of whether the toffee bars are regularly priced at 1 or on sale for 0.50. Based on this information, what is Sallys price elasticity of demand for English toffee in this price range? a. 0 b. 1 c. Infinity d. Cannot be determined.
- Estimates presented in Exhibit 5 show that Android users have a higher price elasticity of demand for apps in the Google Play Store than do iPhone users in the Apple App Store. Why might Android users tend to be more sensitive to app prices than iPhone users? What categories or types of apps (for example, games/social media) do you think have the highest price elasticities?You were promoted as the manager of a new clean well sanitary store taht sells cleaning and sanitation products wholesale. You recently read in an article that there the price of vitamine to be expected to increase by 20 percent. How will this affect your stores sale of sanitation products Items selected cross price elasticity Food supplement 0.34 Medicines 0.56 Foods 0.09Ceb's income has just risen from $950 per week to $1,050 per week. As a result, she decides toincrease the number of movies she attends each month by 5 percent. Her demand for movies is inelastic elastic?
- Sally Henin has a price elasticity of demand for gasoline of -0.8. Her income elasticity for gasoline is 0.5. Sally's current income is $40,000 per year. Sally currently spends $800 per year on gasoline. The price of gasoline is currently $1.00 per gallon. A contemplated excise tax on gasoline will cause the price of gasoline to rise to $1.40. What impact will the tax have on Sally's consumption of gasoline? Since the purpose of the tax is only to discourage gasoline consumption, Congress is considering a $200 income tax rebate to lessen the burden of the gasoline tax. What impact will the rebates have on Sally's consumption of gasoline? Assume that both the tax and rebate are implemented. Will Sally be worse off or better off?Johnny 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.You were promoted as the manager of a new Clean-well Sanitary Store that sells cleaning and sanitation products wholesale. You recently read in an article there that the price of vitamins is expected to increase by 20 percen. How will this affect your store's sales of sanitation products? Items Selexted Cross price elasticity Food supplements 0.34 Medicines 0.56 Foods 0.09
- When Alex's income increased from $7,000 to $9,000, he increased his consumption of bagels from 5 to 9 a month and decreased his consumption of donuts from 15 to 9 a month. Calculate Alex's income elasticity of demand for bagels and donuts. >>> Answer to 2 decimal places. >>> If your answer is negative, include a minus sign. If your answer is positive, do not include a plus sign. Alex's income elasticity of demand for bagels is? Alex's income elasticity of demand for donuts is?Blake eats two bags of generic potato chips each day. Blake's hourly wage increases from $8$8 to $15$15, and he decides to stop eating generic chips and instead eats a name-brand potato chip. Use the midpoint method to calculate Blake's income elasticity of demand for generic potato chips. Round your answer to two decimal places.Blake eats two bags of generic potato chips each day, and does not purchase any name-brand chips. Blake's hourly wage increases from $7 to $15, and he decides to eat one name-brand bag and one generic-brand bag each day. Calculate Blake's income elasticity of demand for generic potato chips.
