The price elasticity of pumpkin spice latte during Fall is -0.5. It follows that that a 5% decrease in the price of pumpkin spice latter will result in O 0.1% increase in the quantity of pumpkin spice latte. 0.1$ decrease in the quantity of pumpkin spice latte. O 2.5% decrease in the quantity of pumpkin spice latte. O 2.5% increase in the quantity demanded of pumpkin spice latte. OO

uppose a low-income family that earns K750 per month consumes 8 Kgs of Hamburgers and 2 Kgs of Beef in Month 1. However, in month 2 when the income of the family rises to K950, the quantity of Hamburgers consumed by the family reduces to 5 Kgs while the quantity of Beef increases to 4Kgs. Your answer       1 (i)     What is the income elasticity of demand for hamburger?       1 (ii)    What is the income elasticity of demand for steak?         1 (iii)    Which of the two goods is an inferior good?

M7

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

i need the answer ASAP     A firm selling ready meals discovers that the price elasticity of its product is -2.5 and the income elasticity of its product is 1.5. Given this information, which of the following statements are true?   A 10% rise in consumer income will lead to a 1.5% rise in sales of its ready meals. b. A 5% rise in the price of its product will lead to a 12.5% fall in sales of its ready meals. c. A 4% fall in the price of its product will lead to a 10% fall in sales of its ready meals. d. A 6% rise in consumer income will lead to a 9.0% rise in sales of its ready meals.

QUESTION 3 X and Y are complementary goods. When the price of X is £5, consumers buy 1000 units of X, but when the price of X goes up to £7 they buy 500 units Which of the following statements describes this situation? O a. The own price elasticity is -1.25 and the cross-price elasticity is negative O b. The own price elasticity is 1.25 and the cross-price elasticity is negative O c. The own price elasticity of demand for X is -0.8 and the cross-price elasticity is negative Od. The own price elasticity of demand for X is 0.8 and the cross-price elasticity is positive

O the producer should raise the price, but not as high as it was, to increase total revenue. Question 2 3 pts Assume that the price elasticity of demand is 0.20. Given a 10 percent increase in price, we will see a 2 percent decrease in the quantity demanded. O2 percent increase in the quantity demanded. O20 percent decrease in the quantity demanded. O 20 percent increase in the quantity demanded. Question 3 3 pts

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QUESTION 4 The demand for apples has decreased by 2% in response to an income decreases of 19%, It follows that O a. The elasticity of demand with respect to income is equal to -0.5 O b. The elasticity of demand with respect to income is equal to +2 O. The slope of the Engel curve for apples is +2 Od. The elasticity of demand with respect to income is equal to +1 O e. None of the proposed answers is correct

Interpret the following two (2). Income elasticise of. Demand (yed) and state if the good are normal or inferior and explain your. Reasoning YED =+ 0.9 YED = - 4.3   Interpret the following cross – price elasticties of. Demand (xed) and state. If the goods are substitutes or compliments and explain your reasoning XED=+0.85 XED=3.2   Ans Both