Make demand more elastic with respect to price

Assignment Help Business Economics

Reference no: EM131424880

1. Which of the following is likely to make demand more elastic with respect to price?

A..The good being a necessity.

B. The good having no close substitutes.

C. The good being a small percentage of income or budget.

D. A short time frame in which to buy the good.

E. none of the above

2. Angela consumes only two goods, x and y. Her income doubles and the prices of the two goods remain unchanged. Assuming that she is a utility maximizer and likes both goods,

a. she will consume more of both goods.

b. the ratio of her consumption of x to y remains constant.

c. her utility doubles.

d. if her preferences are convex, she must consume more x.

e. None of the above.

Reference no: EM131424880

Questions Cloud

What price will consumers pay after the tax : If the government collects a $5 per unit tax from sellers, how much will the quantity demanded change from the amount demanded before the tax? what price will consumers pay after the tax? what price will sellers receive after the tax?

Demand curve crosses the long run aggregate supply? curve : When the price level is below the level at which the aggregate demand curve crosses the long run aggregate supply? curve,

Financing from financial institutions such as banks : Why are large, publicly listed companies much more likely than small businesses to sell financial instruments such as bonds directly to the market, while small businesses get their financing from financial institutions such as banks?

Planning to take early retirement : Mr. White is planning to take early retirement. He has decided that he needs dollar 15000 per year to live on, for the first 5 years of his retirement; after that, his Social Security and other pension plans will provide him an adequate retirement in..

Make demand more elastic with respect to price : Which of the following is likely to make demand more elastic with respect to price? Angela consumes only two goods, x and y. Her income doubles and the prices of the two goods remain unchanged. Assuming that she is a utility maximizer and likes both ..

Describe seven functions of federal reserve system : Describe seven functions of Federal Reserve System and point out which one is playing the most important role.? What are the advantages and disadvantages of biofuels in terms of addressing the challenge of sustainable development? Explain fully?

What are the equilibrium quantities in this market : Suppose two firms compete by choosing quantities and that neither of them sees the other’s quantity before having to commit to its own production level. Inverse market demand is given by p(Q) = 100 − 2Q, where Q is industry quantity. What are the equ..

Consider income guarantee program with income guarantee : Consider an income guarantee program with an income guarantee of $6,000 and a benefit reduction of 50%. A person can work up to 2,000 hours per year at $8 per hour. Draw the person’s budget constraint without the income guarantee. Fully label the gra..

Depletion year for resource under perfection completion : Now assume the following specific demand equation: p = 9 – 0.3q; r = 0.1; R= 80; mc = 2. Suppose the resource price is currently $3 per unit. What is the depletion year for this resource under perfection completion?

User Account

All Pages