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Author Question: Suppose the income elasticity of demand for a private college education is equal to 1.5 . This means ... (Read 68 times)

sarasara

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on: Jul 1, 2018
Suppose the income elasticity of demand for a private college education is equal to 1.5 . This means that
 a. every 1 increase in income provides an incentive for a 1.50 increase in expenditures on private college education
  b. every 1.50 increase in income provides an incentive for a 1 increase in expenditures on private college education
  c. a 10 percent increase in income causes a 15 percent increase in the demand for a private college education
  d. a 15 percent increase in income causes a 10 percent increase in the demand for a private college education
  e. a 10 percent decrease in private college tuition will have a large enough income effect to increase spending on private college education by 15 percent

Question 2

For which of the following medical goods or services is the income elasticity of demand likely to be largest?
 a. emergency services after a car accident
  b. measles shots
  c. physical examinations for life insurance applications
  d. medical tests to diagnose specific symptoms
  e. face-lifts


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Jossy

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

C

Answer to Question 2

E


sarasara

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Reply 2 on: Jul 1, 2018
Wow, this really help

ghepp

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Reply 3 on: Yesterday
Excellent

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