If price rises very slightly from        P = 24,

5) Suppose U (x, y) = x0.5 + y. a. Derive the ordinary demand curves. b. Findi-iv: i Price elasticity ɛp. ii. income elasticity EM ii. income expenditure elasticity EpzM iv. Own price budget share elasticity &sp.

Price D₂ Quantity D In the graph, a change from Point A to Point B represents a(n): A. decrease in demand. B. decrease in quantity demanded C. increase in quantity demanded. D. increase in demand. S

I CUUIOMISTS at JET Consulting consider Campbell's Soup to be an inferior good. During a recession, when the income in the economy is decreasing, economists at JET Consulting would expect the demand curve for Campbell's Soup to 2R.causing the equilibrium price to vta and the equilibrium quantity to nd. a shift to the left; decrease; decrease. b. shift to the left; increase; increase. shift to the right; decrease; increase. d. shift to the right; increase; decrease. e shift to the right; increase; increase. c.

Chapter 3 Review Quantity Figure 3-1 6. Refer to Figure 3-1. Using the graph above and beginning on D1, a shift to D2 would indicate a (n): A. increase in quantity demanded. B. decrease in quantity demanded. C. increase in demand. D. decrease in demand. Price

If the price of domestic airline tickets increases, then, ceteris paribus:A. the demand for domestic air travel will increase.B. the demand for car rentals, a complement in consumption, will increase.C. the demand for domestic air travel will decrease.D. the demand for car rentals, a complement in consumption, will decrease.E. the demand for car rentals, a substitute in consumption, will decrease.

The income of a person is Rs.8000 and he uses 60 units of a commodity. Calculate income elasticity of demand when the income increased by 30% and consumption of the good is declined by 50%.  Also, calculate    New income  New consumption  Nature of good

Hot dogs and hot dog buns are complimentary goods. Therefore, an increase in the price of hot dogs would cause the demand for hot dog buns to A- decrease. B-stay the same. C-not change. D-increase.

QUESTION 14 Assume that the price of chewing gum is $2 and the quantity demanded at that price was 1,000 units. When the price of chewing gum decreases to $1.60 the quantity demanded increases to 1,200. Using the mid-point method, we can say that the demand for chewing gum is Oa, unit elastic. Ob.perfectly inelastic. Oc. elastic. Od. inelastic.