This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A 2 percent increase in income increases the quantity demanded of a good by 1 percent. The income ... (Read 314 times)

Engineer

  • Hero Member
  • *****
  • Posts: 527
on: Jun 29, 2018
A 2 percent increase in income increases the quantity demanded of a good by 1 percent. The income elasticity of demand for this good is _______. The good is a _______ good.
 
  A. 2; normal
  B. 2; inferior
  C. 1/2; normal
  D. 2; inferior

Question 2

Suppose that the local hospital claims that the wages of nurses are too high. Yet, the hospital has 10 nursing positions open and no applicants for the jobs. Is the hospital's claim legitimate? Why or why not?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

kxciann

  • Sr. Member
  • ****
  • Posts: 356
Reply #1 on: Jun 29, 2018
Answer to Question 1

C The income elasticity of demand equals (1 percent)  (2 per-cent); it is positive so the good is a normal good.

Answer to Question 2

No. Since the quantity of nurses demanded is greater than the quantity supplied, there is a shortage of nurses. Thus, the wage currently paid to nurses must be below the market equilibrium wage.


Engineer

  • Member
  • Posts: 527
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

recede

  • Member
  • Posts: 315
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

Did you know?

There are more bacteria in your mouth than there are people in the world.

What makes tea so good What makes tea so good
Good contact feels full, confident, and deliberate and establishes a warm connection between massage ... Good contact feels full, confident, and deliberate and establishes a warm connection between massage ...
Relationship between Latitude and Income per Capita Relationship between Latitude and Income per Capita
Percent of oxygen in the atmosphere versus altitude. Percent of oxygen in the atmosphere versus altitude.
Crossing over in prophase I increases genetic variation Crossing over in prophase I increases genetic variation
A buffer solution is prepared using 0.5 moles of a weakly basic drug and an unknown quantity of ... A buffer solution is prepared using 0.5 moles of a weakly basic drug and an unknown quantity of ...
Video: Interview with an Anorexic Woman (Part 1 of 2)

For a complete list of videos, visit our video library