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Microeconomics
The income elasticity of the demand for shoes is 0,6. Shoes are
- A. an inferior and necessary good.
- B. a normal and luxury good.
- C. a normal and necessary good.
- D. a normal but inferior good.
Microeconomics
- Which of the following statements is correct?
- A.The income elasticity of demand for shelter is high.
- B. The income elasticity of demand for luxuries is high.
- C. The income elasticity of demand for clothing is high.
- D. The income elasticity of demand for food is high.
Microeconomics
John was discussing the market for cocoa beans with his friend Kim. John said, "Ever since Venezuela announced that its cocoa harvest was its lowest ever in fifteen years, the price of cocoa beans has been rising and rising and people are buying more and more. I think the demand for cocoa beans must be upward sloping." Is John’s reasoning correct? Explain why or why not.
Microeconomics
Explain five features of a good economic model
Microeconomics
Define externalities and highlight their negative impacts
Microeconomics
Explain five features of a good economic model
Microeconomics
Which of the following is a demand function?
a. 5P - Q = 4
b. Q = 35 + 3P
c. Q + 4P = 20
d. Q - 2P - 15 = 0
Microeconomics
When the price of erasers increases from R1,50 to R2,50, the quantity demanded of pencils is unchanged. The cross elasticity of demand between erasers and pencils is _____because erasers and pencils ___
A. 0; are normal goods
B. 0,5; are complements
C. 0; are unrelated
D. 1; are substitutes
A. 0; are normal goods
B. 0,5; are complements
C. 0; are unrelated
D. 1; are substitutes
Microeconomics
The income of demand for luxury good is greater than one. This means that the
A. percentage change in price is greater than the percentage change in quantity demanded.
B. percentage change in quantity demanded is smaller than the percentage change in income.
C. percentage change in quantity demanded is equal to the percentage change in income.
D. Percentage change in quantity demanded is greater than the percentage change in income.
A. percentage change in price is greater than the percentage change in quantity demanded.
B. percentage change in quantity demanded is smaller than the percentage change in income.
C. percentage change in quantity demanded is equal to the percentage change in income.
D. Percentage change in quantity demanded is greater than the percentage change in income.
Microeconomics
If the price of good A falls and the quantity demanded of good B rises,
A. good B is an inferior good.
B. the cross elasticity of demand is positive.
C. the cross elasticity of demand is negative.
D. good A is an inferior good.
A. good B is an inferior good.
B. the cross elasticity of demand is positive.
C. the cross elasticity of demand is negative.
D. good A is an inferior good.
