A person is demoted at work because of badperformance and his income falls from taka30,000 monthly to taka 20,000 monthly. As aresult, he starts to buy fewer chickens and morepotatoes for his meals.What type of a good is a potato?Answer in one word.What type of a good is a chicken?Answer in one word.Due to the fall in income, the quantity demandedfor chicken falls from 20 per week to 12 perweek.Is the YED of chicken elastic or inelastic?Answer in one word. A book-seller plans to increase the price of booksto increase his revenue. Before doing that, hecalculates the price elasticity of demand ofbooks and finds that -0.75.What can you say about the price elasticity ofdemand of books?Answer in one word.Given what we know about price elasticity ofdemand of books, if the book-seller decreasesthe price of books, what will happen to hisrevenue?Answer in one word.If supply of books decreases, what will happen tothe book-seller's revenue?Answer in one word. (It may help to draw a demand-supplydiagram before answering this question.)

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A person is demoted at work because of bad performance and his income falls from taka 30,000 monthly to taka 20,000 monthly. As a result, he starts to buy fewer chickens and more potatoes for his meals. What type of a good is a potato? Answer in one word. What type of a good is a chicken? Answer in one word. Due to the fall in income, the quantity demanded for chicken falls from 20 per week to 12 per week. Is the YED of chicken elastic or inelastic? Answer in one word.

A person is demoted at work because of bad performance and his income falls from taka 30,000 monthly to taka 20,000 monthly. As a result, he starts to buy fewer chickens and more potatoes for his meals. What type of a good is a potato? Answer in one word. What type of a good is a chicken? Answer in one word. Due to the fall in income, the quantity demanded for chicken falls from 20 per week to 12 per week. Is the YED of chicken elastic or inelastic? Answer in one word.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider the same apple-juice market. Suppose now, the demand curve a liter of apple-juice is given by: P = 107 - 5QD. i. Calculate the price elasticity of demand of apple-juice when price rises from 55 to 80. Give your answer in two decimal places. After the price rise, the income of a person goes up from 31033 to 46187. The new demand curve is P = 132 - 5QD. ii. Calculate the income elasticity of demand. Give your answer in two decimal places. iii. Due to this increase income, has demand become more or less elastic? More elastic Less elastic Income and demand elasticity are not related Not enough information given iv. If the increase in income (and the subsequent shift of the demand curve) had occurred before the rise in price, what would the YED be? Give your answer in two decimal places.
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