Microeconomics (13th Edition)
13th Edition
ISBN: 9780134744476
Author: Michael Parkin
Publisher: PEARSON
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Chapter 8, Problem 22APA
To determine
Cross
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Nadia consumes two goods, food and clothing. The price of food is $2, the price of clothing is $5, and her income is $1,000. She always spends 40% of her income on food regardless of the price of food, clothing, or her income.
What is her price elasticity of demand for food?
What is her cross-price elasticity of demand for food with respect to clothing?
What is her income elasticity of demand for food?
How is tomato related to cabbage?
Compute and interpret the cross elasticity of supply of cabbage with respect to the dealer’s price of complete fertilizer.
If the price of complete fertilizer increases by 20 percent, by how much will the supply of cabbage change, holding other factors constant?
Cindy enjoys golf and tennis. The price of an hour of golf is $10.
When the price of an hour of tennis is $5, Cindy plays 5 hours of golf a month. And when the price of an hour of tennis $10, Cindy plays 4 hours of golf a month.
Explain how Cindy's demand for golf changed when the price of an hour of tennis increased from $5 to $10.
What is Cindy's cross elasticity of demand for golf with respect to the price of tennis?
Are tennis and golf substitutes or complements for Cindy?
Cindy's demand for golf
when the price of an hour of tennis rises.
O A. increases
O B. decreases
OC. does not change but her quantity of golf demanded decreases
O D. does not change but her quantity of golf demanded increases
Cindy's cross elasticity of demand for golf with respect to the price of tennis is
>>> Answer to 2 decimal places.
>>> If your answer is negative, include a minus sign. If your answer is positive, do not include a plus sign.
For Cindy, tennis and golf are
Chapter 8 Solutions
Microeconomics (13th Edition)
Ch. 8.1 - Prob. 1RQCh. 8.1 - Prob. 2RQCh. 8.1 - Prob. 3RQCh. 8.1 - Prob. 4RQCh. 8.2 - Prob. 1RQCh. 8.2 - Prob. 2RQCh. 8.2 - Prob. 3RQCh. 8.2 - Prob. 4RQCh. 8.3 - Prob. 1RQCh. 8.3 - Prob. 2RQ
Ch. 8.3 - Prob. 3RQCh. 8.3 - Prob. 4RQCh. 8.3 - Prob. 5RQCh. 8.4 - Prob. 1RQCh. 8.4 - Prob. 2RQCh. 8.4 - Prob. 3RQCh. 8.4 - Prob. 4RQCh. 8 - Prob. 1SPACh. 8 - Prob. 2SPACh. 8 - Prob. 3SPACh. 8 - Prob. 4SPACh. 8 - Prob. 5SPACh. 8 - Prob. 6SPACh. 8 - Prob. 7SPACh. 8 - Prob. 8SPACh. 8 - Prob. 9SPACh. 8 - Prob. 10SPACh. 8 - Prob. 11SPACh. 8 - Prob. 12SPACh. 8 - Prob. 13SPACh. 8 - Prob. 14SPACh. 8 - Prob. 15SPACh. 8 - Prob. 16APACh. 8 - Prob. 17APACh. 8 - Prob. 18APACh. 8 - Prob. 19APACh. 8 - Prob. 20APACh. 8 - Prob. 21APACh. 8 - Prob. 22APACh. 8 - Prob. 23APACh. 8 - Prob. 24APACh. 8 - Prob. 25APACh. 8 - Prob. 26APACh. 8 - Prob. 27APACh. 8 - Prob. 28APACh. 8 - Prob. 29APACh. 8 - Prob. 30APACh. 8 - Prob. 31APACh. 8 - Prob. 32APA
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- As the price of good X rises from 10 to 12, the quantity demanded of good Y rises from 100 units to 114 units. Are X and Y substitutes or complements? What is the cross elasticity of demand?arrow_forwardEconomists 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_forwardNadia consumes two goods, food and clothing. The price of food is $2,the price of clothing is $5,and her income is $1,000. Nadia always spends 40 percent of her income on food regardless of the price of food, the price of clothing, or her income.What is her price elasticity of demand for food?arrow_forward
- Tracey usually pays a price between $6 and $10 per pound of rice. Her monthly total expenditure on rice increases as the price decreases. What does this implyabout her price elasticity of demand for rice?arrow_forwardHow do you think income elasticity affects a normal good versus an inferior good? Provide an example.arrow_forwardPick a good whose demand is price elastic. Let's find substitutes and five compliments. Which is easy to come up with the list of substitutes or the list of compliments? Explain.arrow_forward
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