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Author Question: The figure above shows Ilene's budget line. The price of a can of cat food is 2. The price of a can ... (Read 39 times)

sabina

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  • Posts: 563
on: Jun 29, 2018
The figure above shows Ilene's budget line. The price of a can of cat food is 2. The price of a can of dog food
 
  A) is 1.60.
  B) is 4.00.
  C) is 5.00.
  D) cannot be determined without more information.

Question 2

Peter's monthly income increases from 1,500 to 1,600. As a result, he increases the number of DVDs he buys per month from 2 to 3. Peter's demand for DVDs is
 
  A) price elastic.
  B) price inelastic.
  C) income elastic.
  D) income inelastic.


Juro

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  • Posts: 337
Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

C


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