Linear relationship between income and quantity demanded

Assignment Help Business Economics
Reference no: EM13889172

Your income rises from $1,000 a year to $10,000 and your purchases of beer increase from 10 to 20. Assume a linear relationship between income and quantity demanded. What number below most closely approximates your income elasticity at income equals $4,500?

Reference no: EM13889172

Questions Cloud

As result of the kansas-nebraska act : As a result of the Kansas-Nebraska Act:
Compute the break-even point in units for the company : Compute the break-even point in units for the company. Determine the number of units to be sold at the break-even point for each product line.
Major contributing factor in the start of the slave trade : A major contributing factor in the start of the slave trade in the New World was?
Identify specific accounting transactions : differences between U.S. corporate financial statements and foreign corporate financial statements
Linear relationship between income and quantity demanded : Your income rises from $1,000 a year to $10,000 and your purchases of beer increase from 10 to 20. Assume a linear relationship between income and quantity demanded. What number below most closely approximates your income elasticity at income equals ..
The loss at the battle of manassas proved to the north : The loss at the Battle of Manassas proved to the North that?
The communist party as revolutionary force : Which communist theorist is most closely identified with the communist party as a revolutionary force?
Stable continuous-time lti system : Consider a stable continuous-time LTI system with impulse response h(t) that is  real and even. Show that cos wt and sin wt are eigenfu nctions of this system with the same real eigenvalue.
Specializing in a surgical residency is extremely profitable : Going to medical school and specializing in a surgical residency is extremely profitable, and the best evidence to support that is the high annual incomes earned by surgeons.

Reviews

Write a Review

Business Economics Questions & Answers

  What impact did that job loss have on the us economy

Reflect on the changes in U.S. manufacturing over the last half century. Why did the United States lose so many jobs? What impact did that job loss have on the U.S. economy and on the economies of countries like China and Mexico that have been the re..

  Lend on the capital market at an interest rate

You've just won the state lottery and will receive 20 annual payments of $70,000, with the first payment arriving 1 year from today. It is easy for you to borrow or lend on the capital market at an interest rate of 8% per year. If someone offered to ..

  Most optimal number of space

Illustrate what would be the most optimal number of spaces, and Illustrate what are these corresponding prices.

  What is the four firm concentration ratio

Suppose that the demand in a particular industry is given by Qd = 100 – 2P. When the market price in the industry is $10 per unit, what is the total quantity demanded in the industry? If you assume that each of the four largest firms in the industry ..

  Two firms sell an homogeneous product

Suppose two firms sell an homogeneous product; they compete in prices. Their respective marginal costs are MC1(q) = 10 and MC2(q) = 20. Find the prices that form equilibrium (for simplicity and reality, assume that prices are quoted in units no small..

  Consider small open economy operating fixed exchange rate

Consider a small open economy operating a fixed exchange rate. Compare the effects on domestic real GDP of an increase in government spending under each of the following circumstances:

  If there are no fixed costs of production

If there are no fixed costs of production, the q that solves the firm’s first-order condition is

  Share of gdp is composed of consumption

Illustrate what share of GDP is composed of consumption. Illustrate what share of GDP is composed of investment.

  What she would prefer to invest her time elsewhere

The manager of a corporate division faces the posibility of an audit every year. She prefers to spend time preparing if she will be audited; otherwise, she would prefer to invest her time elsewhere.

  Consider restricting foreign investment

Because real investment by foreigners expands a country’s capital stock and hence presumably its output and income, why should any country consider restricting foreign investment?

  Identify the nature of resource cost structure

Identify the nature of resource cost structure and the practical significance of different costs and explain the factors influencing optimum size and the significance of demand and supply relationships.

  Q1 jane wants to buy a beautiful doll as a gift for her

q1. jane wants to buy a beautiful doll as a gift for her sisters birthday. she knows that the same product is offered

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd