Multiple Choice
Income elasticity measures the
A) Responsiveness of quantity demanded for one good to a percentage change in price of another good.
B) Responsiveness of quantity demanded to a percentage change in income.
C) Way in which consumers switch from one product to another when price rises.
D) Percentage change in quantity demanded given a percentage change in wealth.
Correct Answer:
Verified
Correct Answer:
Verified
Q122: To find the average percentage change in
Q123: A good is normal if the sign
Q124: Supply is very inelastic if the quantity
Q125: If the cross-price elasticity of demand for
Q126: If a good is inferior,its<br>A)Cross-price elasticity is
Q128: If the price elasticity of demand is
Q129: Refer to Figure 20.2.If the area 0P<sub>1</sub>AB
Q130: When the price of taking a ride
Q131: The formula for the elasticity of supply
Q132: When demand is elastic,the absolute number for