Generally speaking the demand for a good will be more inelastic if the good is very specific and narrowly defined. O the greater the time period being considered. O if the good is a luxury. O if the good makes up a small part of an individual's budget.

Q: uestion 3 "If income elasticity for good X equal 4, this means that If income increased by 1%,…

A: Elasticity refers to the measure of change in one variable due to the change in other variable. The…

Q: Suppose the own price elasticity of demand for good Xis -4, its income elasticity is -2, its…

A: here we calculate the change in quantity of X due to change in Advertisement which are as follow-

Q: Consider the demand curve for a good is given by: Qp = 500 – 2P and suppose that the good's price is…

A: Given :  Qd=500-2P Price of a good = $100

Q: When the demand for a product is elastic, the firm will Increase its total revenue by O Reducing its…

A: Price elasticity of demand refers to the responsiveness of quantity demanded to a change in price.…

Q: is a measurement of demand elasticity, calculated by multiplying slope of the demand by a ratio of…

A: There are different methods to measure demand elasticity such as arc method, point method, and so…

Q: Suppose a good has a demand curve given by Q = 20 - 8P. What is the price elasticity of demand if…

A: Demand curve = Q = 20 - 8P  P = $2

Q: b) For the utility function above, what is the cross-price elasticity of demand for good x with…

A: Here we will find the demand equation of x good and y good . And cross ELASTICITY of demand can be…

Q: Price D4 D3 D2 D1 Quantity Which demand function is the least elastic? OD1 O D2 D3 D4 O Not enough…

A: Demand curve with less elasticity of demand is steeper because increase in price does not leads to…

Q: a)price elasticity of demand b)the cross price elasticity of demand c) if the income rises by 5%,…

A: Price elasticity of demand measures the responsiveness in quantity demanded of a commodity to a…

Q: If the demand for a good increases with a decrease in its pric the good is: A normal good. O An…

A: Demand reflects the different quantities demanded of a good or service at various prices during some…

Q: In_, a change in quantity demanded for one product or service causes a change in simple demand for a…

A: Elasticity is a way to demonstrate the change in the quantity of commodity/services due to the…

Q: If demand for your product is inelastic , it is better for you to cut your prices O True O False

A: The degree to which demand responds to a change in another economic component like price, income…

Q: If hot dogs are an inferior good, we can conclude that OA. the income elasticity of demand is…

A: Inferior good refers to the good whose demand is negatively associated with income. Or rise in…

Q: If a good is a necessity, demand for the good would tend to be Select one: O a. horizontal O b. unit…

A: Elasticity is defined as the responsiveness or sensitiveness on the demand if the factor influencing…

Q: The quantity of sugar demanded tends to be highly responsive to changes in its price. O True False

A: In a market, the price elasticity of demand depends upon the the nature of good Nd its usage by the…

Q: If the elasticity is greater than 1, is demand elasticor inelastic? If the elasticity equals zero,…

A: Elasticity is a term used in economics to describe how the aggregate quantity demanded of a good or…

Q: Suppose the own price elasticity of demand for good X is -4, its income elasticity is -2, its…

A: Suppose the own price elasticity of demand for good x is -4 , And it's income elasticity is -2 and…

Q: Indicate whether the following statements are true or false, giving your reasons and making the…

A: Demand is defined as the amount of a service or a good which a consumer is willing to buy at a…

Q: Suppose the own price elasticity of demand for good X is -4, its income elasticity is -2, its…

A: here we calculate the change in quantity due to change in price which are as follow-

Q: What demand structure do products which are urgently needed as necessities likely to possess. a.…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: Given two demand curve drawn over the same price/output space, the steeper one will be a. elastic…

A: Elasticity of demand measures the responsiveness of quantity demanded with respect to change in…

Q: When the price of a good is too high for consumers, they look for inelastic demand O substitutes O…

A: Demand is the total quantity of products and services for which the customers are willing to pay…

Q: Which of the following will cause the demand for a good or service to be inelastic? o Having few…

A: Demand for the good is said to be inelastic when its quantity demanded does not change much with…

Q: Nam's Marshallian demand function for good X and Y is given by: X* Suppose that P-3, a - 0.7, B =…

A: Demand function for good X=I/2Px(α+β) Putting the given values in the demand function to find the…

Q: A good's price elasticity of demand depends in part on how necessary it is relative to other goods.…

A: Part (1)   If a good has a higher number of close substitutes, then that good has a relatively…

Q: Suppose a demand curve for x is given by Q, = 90 – 2P, + 2P, - 5M, where Q, is the quantity demanded…

A:

Q: The demand for a product is O more elastic if the product represents a small portion of the…

A: In a market, the elasticity of demand depends upon various factors such as time period, budget…

Q: A negative income elasticity of demand for a commodity indicates that as income falls, the amount of…

A: The formula is use Income Elasticity of demand=%Change in Quantity Demanded% change in Income

Q: Which of the following combinations best describes the effects.of a consumer income increase on the…

A: For normal goods, income and demand are directly related. An increase in income would lead to an…

Q: A good synonym for elasticity would be Select one: O a. responsiveness O b. volatility C. stability…

A: Elasticity is the measure of percentage change of one economic variable in the response to a change…

Q: 1. Demand is a function of O Price

A: Demand for various goods and services is created by the consumers of the market, and the suppliers…

Q: If the income elasticity of demand for name brand (as opposed to store brand) breakfast cereal is…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: a) A consumer has a utility function given by U = x0.25 y0.75 He has an income of £100, the price of…

A: Utility is maximized at the point where slope of indifference curve given by ratio of marginal…

Q: For each scenario, calculate the income elasticity of demand, determine whether the good is inferior…

A: Demand that is highly and favourably responsive to a change in income is said to be "income…

Q: When the demand for a product is inelastic, the firm will increase its total revenue by O Reducing…

A: An increase in the price of an inelastic product does not much affect the quantity produced.…

Q: If a 10% increase in the price of good X, causes the demand for good Y to increase by 5% then you…

A: Substitute goods are comparative items that a client might use for a similar reason. Your clients…

Q: Jenny has a utility function U(x, y) 4xy +20. The prices of x and y are both $1 and Jenny has an in-…

A: here we find the jennys expenditure on goods x and goods y which are as follow-

Q: An individual has the following utility, U = In X + 2 In Y. What do we know about the Marshallian…

A: Since you have posted two questions, so as per the guidelines we're able to solve only 1st, for 2nd…

Q: If Neil's elasticity of demand for hot dogs is constantly 0.9, and he buys 4 hot dogs when the price…

A: Elasticity is a measure of responsiveness of one variable with respect to another. When the…

Q: If Judy's income elasticity of demand for burgers is negative, then we know that burgers are a(n) […

A: Elasticity is defined as the responsiveness or sensitiveness on the demand if the factor influencing…

Q: Nam's Marshallian demand function for good X and Y is I given by: X* Suppose that Px=4, a = 0.7, ß =…

A: Demand function for good X X = I / [2Px (α + β)] Differentiate X w.r.t Px => dX / dPx = -I /…

Q: A consumer’s demand curve for X is given by the equation P=100- square root of Q. Calculate his…

A: In order to find the elasticity we first find the Q at given P=60 and then the slope of the demand…

Q: When a good or service faces an inelastic demand curve, a change in price will have a small effect…

A: The price elasticity of demand determines the shape of the demand curve of the good. The demand…

Q: ity ler the following demand equation for good a. Good a demands is a function of e (Y) and prices…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: 38. Which of the following is true? Oaf the cross-price elasticity of demand between two goods is…

A: Hey, Thank you for the question. According to our policy, we can only answer 1 question per session.…

Q: 43. If income elasticity for a good is 2, then it is a A. Necessity item B. O Inferior good C. O…

A: Elasticity of demand is used to assess the change in the quantity demanded as a result of changes in…