Author Question: A 10 percent increase in income increases the quantity of orange juice demanded from 19,200 to ... (Read 83 times)

misspop · **on:** Jun 29, 2018

A 10 percent increase in income increases the quantity of orange juice demanded from 19,200 to 20,800 gallons. The income elasticity of demand for orange juice is

A) 0.5.
B) 0.8.
C) 1.0.
D) 1.2.

Question 2

Generating electricity creates air pollution. This industry, if left unregulated, will produce

A) more than the efficient level of output.
B) the efficient level of output.
C) less than the efficient level of output.
D) sometimes more and sometimes less than the efficient level of output.