Table 4 Income $30,000 $40,000 Quantity of Good X Purchased 2 6 Quantity of Good Y Purchased 20 10 Refer to Table 4. Using the midpoint method, the income elasticity of demand for good Y is Select one: O a. -2.33, and good Y is an inferior good. O b. 2.33, and good Y is a normal good. O c. -0.43, and good Y is a normal good. O d. -0.43, and good Y is an inferior good. E

What is the relationship between price elasticity and position on the demand curve? For example, as you move up the demand curve to higher prices and lower quantities, what happens lo the measured elasticity? How would you explain that?

Why is the supply curve with constant unitary elasticity a straight line?

If a 10 decrease in the price of one product that you buy causes an 8 increase in quantity demanded of that product, will another 10 decrease in the price cause another 3 increase (no more and no less) in quantity demanded?

Why is the demand curve with constant unitary elasticity concave?

The rules of politics are not always the same as the rules of economics. In discussions of setting budgets for government agencies, there is a strategy called closing the Washington Monument. When an agency faces the unwelcome prospect of a budget cut, it may decide to close a high-visibility attraction enjoyed by many people (like the Washington Monument). Explain in terms of diminishing marginal utility why the Washington Monument strategy is So misleading. Hint: If you are really trying to make the best of a budget cut, should you cut the items in your budget with tile highest marginal utility or line lowest marginal utility? Does the Washington Monument strategy cut the items with the highest marginal utility or line lowest marginal utility?

As a general rule, is it safe to assume that a change in the price of a good will always have its most significant impact on the quantity demanded of that good, rather than on the quantity demanded of miller goods? Explain.

I need both answer

What is the sum of all individual demand curves for a product? Select one: summation demand cross out O b. market demand cross out Oc consumption demand cross out O d. total demand cross out

The following graph shows the demand for a good. PRICE (Dollars per unit) 70 ++ 35 25 10 0 OO +-+- 1 14 Region Between W and X 6 Between X and Y Between Y and Z O True O False For each of the regions listed in the following table, use the midpoint method to identify if the demand for this good is elastic, (approximately) unit elastic, or inelastic. I EL 15 21 Elastic O O QUANTITY (Units) W Inelastic Unit Elastic O O O Demand O True or False: The slope of the demand curve is equal to the value of the price elasticity of demand. (?)