Author Question: If a 6 percent increase in income leads to a 4 percent increase in quantity demanded for audio ... (Read 258 times)

crobinson2013 · **on:** Jun 29, 2018

If a 6 percent increase in income leads to a 4 percent increase in quantity demanded for audio books, the income elasticity of demand is

A) -0.67. B) 0.67. C) 1.5. D) 2.

Question 2

What does a firm's production function show and how is it related to a total product curve?

What will be an ideal response?

covalentbond · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

B

Answer to Question 2

A firm's production function is the relationship between the maximum output attainable and the quantities of both capital and labor. The total product curve shows the maximum output that a given quantity of labor can produce for a given quantity of capital.