Author Question: If the quantity demanded of good x rises by 3 and, in response, your income goes up by 2, the income ... (Read 57 times)

kaid0807 · **on:** Jul 1, 2018

If the quantity demanded of good x rises by 3 and, in response, your income goes up by 2, the income elasticity of demand would be:
a. 1.5
b. 6
c. 3
d. .20

Question 2

Suppose this is a repeated game where the firms adopt a trigger strategy. What would the trigger strategy look like?
a. Charge low prices until he charges a high price, and then match
b. Charge high prices until he charges a low price, then match
c. Charge a high price till he charges a high price, then charge a low price
d. Charge a low price till he charges a low price, then charge a high price