Suppose the income elasticity of demand for food is 0.5 and the price elasticity of demand -1.0. Suppose also that your housemate Claire spends $10,000 per year on food, that the price of food is $4, and that her keome is S50,000. a) If a S4 sales tax on food were to cause the price of food to double, how much food woukd Claire's consume? b) Suppose she is given a state sales tax rebate of $5,000 to case the effect of the tax. Now how much food would she-cat?

A taco shop observes that when it increases the price of a taco, total revenue from taco sales decreases, and when they lower the price of a taco, total revenue from taco sales increases. This suggests: O the demand for tacos is inelastic. O the demand for tacos is unit elastic. there are many good substitutes for tacos. O the law of demand is being violated.

When the price of coffee increases 5%, quantity demanded decreases 10%. The price elasticity of demand for coffee is __ and total revenue from coffee sales will O inelastic; decrease C inelastic; increase O elastic: increase O elastic: decrease

d a Goods like rice or bread are considered necessities. Which of the following is the best example of the income elasticity for a necessity? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. b C d inferior goods (3 Question 7 +1.5 -1.5 -0.3 +0.3 Question 8 Suppose trading Pokémon cards becomes popular again and a lot of new people start collecting them. What can we expect to happen in the trading card market? 2 correct answers. Multiple answers: Multiple answers are accepted for this question

Carla consumes 10 juices per week when the price is $1.50 per unit. A reduction in this year's orange crop lead to 50% an increase in the price of juice. At the new price level Carla's weekly juice consumption cell to 6 units. calculate Carla's own-price elasticity of demand for juice.

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TURN IN 100% Normal text Arlal 11 B IU A E = = E E E - E - EEX .I .1. I 2 . 3 4 5 I 6 For the questions 5-8 calculate the cross-price elasticity of demand. Based on your answer state if the products are complementary goods or if they are substitute goods. Headings you add to the document will appear here. 5) Price of product X increases by 20%. Qd for product Y decreases by 60%. 6) Price of product X increases by 5%. Qd for product Y increases by 1%. 7) Price of product X decreases by 10%. Qd for product Y increases by 20%. US V O 12 么

Suppose that your demand schedule for pizza is asfollows:Quantity Demanded Quantity DemandedPrice (income 5 $20,000) (income 5 $24,000)$8 40 pizza 50 pizza10 32 4512 24 3014 16 2016 8 12a. Use the midpoint method to calculate your priceelasticity of demand as the price of pizza increasesfrom $8 to $10 if (i) your income is $20,000 and(ii) your income is $24,000.b. Calculate your income elasticity of demand asyour income increases from $20,000 to $24,000 if(i) the price is $12 and (ii) the price is $16.

Attina's sister, Aquata always spends 20% of her income on boots. Assume that her income increases by some percentage while the price of boots remains constant (and that all boots cost the same). What is her income elasticity of demand for boots? O 0.2 need more information to tell 0 1

In the graph on the right, the demand for hot dog buns has changed because the price of hot dogs has risen from $2.80 to $3.30 per package. Hot dog buns 4.00 The cross-price elasticity of demand between hot dogs and hot dog buns is (Use the midpoint formula and enter your response rounded to wo decimal placet. Be sure to include the minus sign if necessay) 125 300 2.75 2.50- 225 2001.89 6.00d 17.0009,000 000 Quantly packages of buns per wook Price idollan per peckage of buns