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Author Question: For which of the following would the income effect of a price change be greatest? a. ballpoint pens ... (Read 83 times)

strangeaffliction

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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.


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potomatos

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

B

Answer to Question 2

C


strangeaffliction

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Reply 2 on: Jul 1, 2018
Excellent

zacnyjessica

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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