Economics: Principles & Policy
14th Edition
ISBN: 9781337696326
Author: William J. Baumol; Alan S. Blinder; John L. Solow
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 6TY
To determine
Identify the normal goods and inferior goods.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Which of the following items are likely to be normal goods for a typical consumer? Which are likely to be inferior goods?
Expensive perfume b. Paper plates c. Second hand clothing d. Overseas trips
Cheese and buns are comements. What will happen if cheese becomes less expensive?
When consumers' incomes increased 10 percent, the quantity of milk bought increased 5 percent. This result means
A. milk is a luxury.
B. milk is a necessity.
C. the demand for milk is income elastic.
D. milk is an inferior good.
Chapter 4 Solutions
Economics: Principles & Policy
Knowledge Booster
Similar questions
- Economists define normal goods as having a positive income elasticity. We can divide normal goods into two types: Those whose income elasticity is less than one and those whose income elasticity is greater than one. Think about products that would fall into each category. Can you come up with a name for each category?arrow_forwardThink Critically • There are factors/determinants influencing the price of a product. Which is the MOST and LEAST important among the factors influencing the price of a product and why? Cite 5 examples each.arrow_forwardFor most goods if a consumer's income increases his demand for the goods will do what?arrow_forward
- Suppose that a consumer spends a fixed amount of income per month on the following pairs of goods: a.tortilla chips and salsab.tortilla chips and potato chips. movie tickets and gourmet coffee d.travel by bus and travel by subway If the price of one of the goods increases, explain the effect on the quantity demanded of each of the goods. In each pair, which are likely to complement and which are likely to be substituted?arrow_forwardWhich of the following pairs of goods are most likely substitutes? a. Cola and lemon lime soda b. Lettuce and salad dressing c. Peanut butter and gasoline d. Compact discs and compact disc playersarrow_forwardMaria graduates from college and her income increases by $45,000. Nothing else changes. Maria decreases the quantity of donuts and pretzels that she buys and increases the quantity of ski trips that she buys. How would Maria describe these goods? For Maria, A. donuts and ski trips have become substitutes B. ski trips and pretzels are normal goods C. donuts and pretzels have become complements OD. ski trips are normal goodsarrow_forward
- Identify the type of goods which have zero cross elasticity of demand. a. Normal goods b. Independent goods c. Dependent goods d. Substitute goodsarrow_forwardNadia consumes two goods, food and clothing. The price of food is $2, the price of clothing is $5, andher income is $1,000. Nadia always spends 40 percent of her income on food regardless of the price offood, the price of clothing, or her income.a. What is her price elasticity of demand for food?b. What is her cross-price elasticity of demand for food with respect to the price of clothing?c. What is her income elasticity of demand for food?arrow_forwardkindly solve the questions i postedarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of MicroeconomicsEconomicsISBN:9781305156050Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Principles of Microeconomics
Economics
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning