State whether the following statements are TRUE or FALSE and explain your answer (d) Income elasticity of demand (E.) is a measure of the degree of responsiveness of changes in the quantity demanded of goods to a change in its price. (e) If the value of income elasticity of demand for goods is negative(E, <0), the quantity demanded will decrease when income increases. Therefore, the goods is an essential goods. (f)Microeconomics is the branch of economics that analyses the behaviour of how national economies work.

Which of the following combinations best describes the effects.of a consumer income increase on the market demand for a f1ormal and aninferior good? Demand increases for the normal good, and denand decreases for the nfenor good. b. Demand increases for the normal good, and demand does not change for the inferior good. c. Demand decreases for the normal good, and demand decreases for the inferior good.

Explain the answer. 12. Which of the following statement/s is/are true? A. Cross price elasticity refers to the response of the consumers in changing the amount purchased for a good given the change in the price of another good B. If the cross price elasticity is negative, the goods under consideration are complementary C. If the cross price elasticity is positive, the goods under consideration are substitutes D. All are true E. None is true

Assume that demand and supply are a simple line. If at the different prices, quantity of demand and price is shows as under, then determine the demand and supply equation. Demand (D) Supply (S) Price (P) 2 40 50 5 20 60

TRUE OR FALSE *If change in quantities demanded and supplied is greater than the change in price, then they type of elasticity of D and s is elastic. *Good has unitary type of elasticity id change in quantities demanded and supplied are equal. *If the product has more close substitutes, the elasticity demand and supplied is inelastic.

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1. Suppose that the demand function is y=-3x + 54. A. What is the highest price a consumer would pay for the commodity? B. What is the quantity demanded if the commodity is offered for free?

The price elasticity of demand measures: a) how sensitive the quantity demanded is to changes in demand. b) the responsiveness of the quantity demanded to changes in price. c) how often the price of a good change. d) the slope of a budget curve.

Solve full question please

1. In your own words, explain the horizontal and vertical interpretation of the demand curve.      2. What is the difference between substitute goods and complementary goods? How do they influence the demand for products?