Suppose the value of income elasticity of demand for a private college education is equal to 1.5. This means that: Group of answer choices  -every $1 increase in income provides an incentive for a $1.50 increase in expenditures on private college education.  -every $1.50 increase in income provides an incentive for a $1 increase in expenditures on private college education.  -a 10 percent increase in income causes a 15 percent increase in the quantity of private college education purchased.  -a 15 percent increase in income causes a 10 percent increase in the quantity of private college education purchased.

Suppose a study suggests that the income elasticity of demand for canned beans is 0.3. Based on this information, you can conclude that canned beans are _____.

The US Dept of Agriculture estimates that the elasticity of demand for cigarettes is 0.3 for adult smokers and 2.5 for teens. Also the income elasticity of demand for cigarettes is 0.5.  A. Suppose the federal government imposes a tax on cigarettes that raises the price by 15 percent. What effect will this have on cigarette consumption by adults? B. Suppose that it was estimated this year there were 2 million teen smokers. What would be the predicted number of teen smokers under the policy in (A.).

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The Australian government have suggested that they might need to increase GST to help fund the COVID-19 rescue package. GST is a tax on goods and services usually paid at the point of sale.Consider the market for bread. Suppose a loaf costs $4.15 and includes a 15-cent tax per loaf.   q4- Has the government revenue increased or decreased? Explain the change using the concept of elasticity.

Year 1 2 Income $10,000 $10,000 Price of Good X $5 $10 Using the above table and the Midpoint Method for Elasticity, suppose now that the income in year 1 increases from $10,000 to $20,000, and as a result, the quantity demanded for good y in year 1 changes from 20 units to 30 units. What is the income elasticity of demand for good Y in year 1? Is Y a normal or inferior good? Explain how you know whether it is a normal or inferior good. Blank 1 Income Elasticity of Demand: Blank 1 (Round your answer to TWO-decimal places; you MUST enter the decimal value even if it is a '0' - ie: 1.20 NOT 1.2.) Blank 2 Good Y is a Blank 2 (normal / inferior) good. Blank 3 Good Y is a normal/inferior good, because Blank 3. QD of Good X 10 units 8 units QD of Good Y 20 units 30 units Add your answer Add your answer Add your answer

8. The variety of supply curves The following graph displays four supply curves (HH, II, JJ, and KK) that intersect at point A. PRICE (Dollars per unit) 400 360 320 280 240 200 160 120 80 40 0 स 0 H 40 K B + A ++O +o D +w E K 80 120 160 200 240 280 320 QUANTITY (Units) H 360 → 400 ?

You can drag and drop files here to add them. Consider the public policy aimed at smoking: (a) Suppose studies indicate that the price elasticity of demand for cigarettes is about 2. If the government is able to increase the price of a pack of cigarette from $2 to $3 (through may be, higher taxes), by what percentage will the consumption (demand) of cigarettes decrease? Please show all calculations. (b) Studies also find that the price elasticity of demand for cigarettes for higher income earners is more inelastic compared to that of those earning less income. Why might this be true? Please explain your answer I of U X2 x2 画 tv MacBook Pro

Q)2. Suppose the price elasticity of demand for education at a certain university is 1.40. The university decides to increase its tuition from $4,000 to $4,400 per semester. Predict the resulting decrease in enrollment at the university.