Beyonce consumes two goods x and y. Suppose the demand curve of x is downward sloping. Explain brie whether you agree or disagree with the following statements? а. A decrease in income must reduce consumption of x: b. An increase in price of y must decrease consumption of x: c. An increase in price of x may increase consumption of x: d. An increase in price of x must decrease consumption of x:

In the figure to the right, the current position of the demand curve for a good is D₁, and the price of the good, which is a normal good, is $4. If there is an increase in consumer incomes, which way will the demand curve shift? Will the quantity demanded of the good increase or decrease? 1.) Using the line drawing tool, draw the new demand curve for a normal good after consumer incomes increase. Label this line 'D₂.' 2.) Using the point drawing tool, indicate the point on the new demand curve, D₂, that corresponds to the quantity demanded when the price is $4 per good. Label this point 'A₂. Carefully follow the instructions above, and only draw the required objects. Price per Unit of the Good ($) 2A₁ D₁ 6 7 8 9 10 Quantity of the Good Demanded

What is the current price of gasoline and how many gallons of gasoline do you currently buy per month? How many gallons would you buy next month and how would your behavior change if the price fell by $1.25 per gallon? Also, based on that information, what is your price elasticity of demand for gasoline? Be sure to show how you calculated your price elasticity of demand.     current price of gas = $2.53 gallons of gas per month = 72 gallons no change for next month On the average I fill my tank up 3 times a month each time I go I spend $60-$65

43. If Mary's income increases and she consumes less rice. Therefore, rice is: 44. If the price of one product increases, the quantity demanded of another product increases, we can conclude that the products are: