Answer to Question #127326 in Microeconomics for a a4

Question

1. For a good that is a luxury, demand
a. tends to be inelastic.
b. tends to be elastic.
c. has unit elasticity.
d. cannot be represented by a demand curve in the usual way.

2. Which of the following is likely to have the most price inelastic demand?
a. Laptop computers.
b. MP3 players.
c. Designer jeans.
d. University tuition.

3. Demand is inelastic if the price elasticity of demand is
a. less than 1.
b. equal to 1.
c. greater than 1.
d. equal to 0.

Answer 1

1. For a good that is luxury, demand cannot be represented by a demand curve in the usual way.

answer; (d)cannot be represented by a demand curve in the usual way.

2). answer; (d) university tuition

3). Demand is inelastic if the price elasticity of demand is less than 1.

answer; (a) less than 1