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

Author Question: For which of the following would the income effect of a price change be greatest? a. ballpoint pens ... (Read 57 times)

strangeaffliction

  • Hero Member
  • *****
  • Posts: 660
on: Jul 1, 2018
For which of the following would the income effect of a price change be greatest?
 a. ballpoint pens
  b. air travel to Australia
  c. chewing gum
  d. haircuts
  e. college textbooks

Question 2

Suppose there are only two goods, apples and oranges. What happens if the price of each good increases by 15 percent?
 a. The consumer will substitute apples for oranges.
  b. The consumer will substitute oranges for apples.
  c. There is no substitution effect because relative prices have remained constant.
  d. Demand for both goods increases.
  e. Demand for both goods decreases.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

potomatos

  • Sr. Member
  • ****
  • Posts: 338
Reply #1 on: Jul 1, 2018
Answer to Question 1

B

Answer to Question 2

C


strangeaffliction

  • Member
  • Posts: 660
Reply 2 on: Jul 1, 2018
Gracias!

bassamabas

  • Member
  • Posts: 294
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

Symptoms of kidney problems include a loss of appetite, back pain (which may be sudden and intense), chills, abdominal pain, fluid retention, nausea, the urge to urinate, vomiting, and fever.

Did you know?

If all the neurons in the human body were lined up, they would stretch more than 600 miles.

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Wheat and Cotton Prices and Consumer Price Indexes, 1865–1896 Wheat and Cotton Prices and Consumer Price Indexes, 1865–1896
Doppler effect Doppler effect
Rock cores as indicators of environmental change Rock cores as indicators of environmental change
How the Return to Education Affects the Distribution of Income How the Return to Education Affects the Distribution of Income
The ancestral and modern-day tomato. (b) Phenotypic effect of the fw2.2 transgene in the tomato The ancestral and modern-day tomato. (b) Phenotypic effect of the fw2.2 transgene in the tomato
Position effect, as illustrated in the eye phenotype in two female Drosophila Position effect, as illustrated in the eye phenotype in two female Drosophila
Video: Random alignment at Metaphase I Animation

For a complete list of videos, visit our video library