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

Author Question: What does the income elasticity of demand measure? What will be an ideal ... (Read 70 times)

Medesa

  • Hero Member
  • *****
  • Posts: 507
on: Jun 29, 2018
What does the income elasticity of demand measure?
 
  What will be an ideal response?

Question 2

Why are consumers in a competitive market considered to be price takers?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

alexanderhamilton

  • Sr. Member
  • ****
  • Posts: 334
Reply #1 on: Jun 29, 2018
Answer to Question 1

The income elasticity of demand measures how the quantity demanded of a good responds to a change in income. The formula for the income elasticity of demand is the percentage change in the quantity of the good demanded divided by the percentage change in income.

Answer to Question 2

A consumer in a competitive market can buy any quantity of a good without affecting the market price, and is therefore considered to be a price taker. This is because a competitive market is characterized by many buyers and sellers and each consumer only buys a small fraction of the total quantity supplied of a good.


Medesa

  • Member
  • Posts: 507
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

recede

  • Member
  • Posts: 315
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

Sample Items from the Brief Multidimensional Measure of Religiousness/Spirituality (BMMRS) Sample Items from the Brief Multidimensional Measure of Religiousness/Spirituality (BMMRS)
Cultures Ideal Body Types Cultures Ideal Body Types
To measure engine oil pressure, remove the oil pressure sending (sender) unit usually located near ... To measure engine oil pressure, remove the oil pressure sending (sender) unit usually located near ...
Connections and settings necessary to measure fuel-injector resistance. Connections and settings necessary to measure fuel-injector resistance.
The growing demand for electrical power, carbon sequestration and storage must be a priority The growing demand for electrical power, carbon sequestration and storage must be a priority
Under ideal conditions, a single cell of the bacterium E. coli would divide every 20 minutes to ... Under ideal conditions, a single cell of the bacterium E. coli would divide every 20 minutes to ...
Video: Primary and secondary response to infection

For a complete list of videos, visit our video library