Good or Service Price Elasticity Income Elasticity Beef -0.5 0.51 Long Distance Telephone -0.32 1.2 Cigarettes All smokers -0.7 0.9 Ages 15-18 -1.4 1.5 The income elasticity for cigarette smoking among ages 15-18 years old implies that Select one: a. An increase in income by 10% will lead to an increase in income by 1.4 units. b. An increase in income by 10% will lead to a decrease in quantity demand by 1.5 units c. An increase in income by 10% will lead to an increase in quantity demand by 1.5 %. d. An increase in income by 10% will lead to increase in income by 1.5%.
Good or Service Price Elasticity Income Elasticity Beef -0.5 0.51 Long Distance Telephone -0.32 1.2 Cigarettes All smokers -0.7 0.9 Ages 15-18 -1.4 1.5 The income elasticity for cigarette smoking among ages 15-18 years old implies that Select one: a. An increase in income by 10% will lead to an increase in income by 1.4 units. b. An increase in income by 10% will lead to a decrease in quantity demand by 1.5 units c. An increase in income by 10% will lead to an increase in quantity demand by 1.5 %. d. An increase in income by 10% will lead to increase in income by 1.5%.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
|
Good or Service |
Price Elasticity |
Income Elasticity |
|
Beef |
-0.5 |
0.51 |
|
Long Distance Telephone |
-0.32 |
1.2 |
|
Cigarettes |
|
|
|
All smokers |
-0.7 |
0.9 |
|
Ages 15-18 |
-1.4 |
1.5 |
The income elasticity for cigarette smoking among ages 15-18 years old implies that
Select one:
a. An increase in income by 10% will lead to an increase in income by 1.4 units.
b. An increase in income by 10% will lead to a decrease in quantity demand by 1.5 units
c. An increase in income by 10% will lead to an increase in quantity demand by 1.5 %.
d. An increase in income by 10% will lead to increase in income by 1.5%.
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