Use the following information about the demand elasticities for apples’s in the US to answer the questions that follow. Own-price elasticity: -0.45 Cross-price elasticity with bananas: 0.15 Cross-price elasticity with eggs: -0.30 Income elasticity: 0.15 Suppose that apple consumption in the US rose by 7.5% due to a change in income. Which of the following happened? a. Incomes rose by 100% b. Incomes rose by 15% c. Incomes rose by 200% d. Incomes rose by 50%
Use the following information about the demand elasticities for apples’s in the US to answer the questions that follow. Own-price elasticity: -0.45 Cross-price elasticity with bananas: 0.15 Cross-price elasticity with eggs: -0.30 Income elasticity: 0.15 Suppose that apple consumption in the US rose by 7.5% due to a change in income. Which of the following happened? a. Incomes rose by 100% b. Incomes rose by 15% c. Incomes rose by 200% d. Incomes rose by 50%
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Use the following information about the
Own-
Cross-price elasticity with bananas: 0.15
Cross-price elasticity with eggs: -0.30
Income elasticity: 0.15
Suppose that apple consumption in the US rose by 7.5% due to a change in income. Which of the following happened?
| a. |
Incomes rose by 100%
|
|
| b. |
Incomes rose by 15%
|
|
| c. |
Incomes rose by 200%
|
|
| d. |
Incomes rose by 50%
|
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