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Author Question: If an increase in income results in a rightward parallel shift of the demand curve, then at any ... (Read 74 times)

natalie2426

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on: Jul 1, 2018
If an increase in income results in a rightward parallel shift of the demand curve, then at any given price, the price elasticity of demand will have
 
  A) increased in absolute terms.
  B) decreased in absolute terms.
  C) remained unchanged.
  D) increased, decreased or stayed the same. It cannot be determined.

Question 2

Suppose the demand function for a good is expressed as Q = 100 - 4p. If the good currently sells for 10, then the price elasticity of demand equals
 
  A) -1.5.
  B) -0.67.
  C) -4.
  D) -2.5.
Microeconomics ¦ Perloff ¦ 8th Edition
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nothere

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Reply #1 on: Jul 1, 2018
Answer to Question 1

B

Answer to Question 2

B


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