Suppose good x has a negative income elasticity of demand. this implies that good x is

Suppose good x has a negative income elasticity of demand. This implies that good x is A. a normal good B. a necessity C. an inferior good D. a luxury Suppose good x has a positive income elasticity of demand. This implies that good X could be I. a normal good II. a necessity III. An inferior good IV. a luxury A. only B. and (ii) only C. (i), (ii), and (iv) only D. (ii) only For which of the following types of goods would the income elasticity of demand be positive and relatively large? A. all inferior goods B. all normal goods C. goods for which there are many complements D. luxuries Assume that a 4 percent increase in income results in a 2 percent increase in the quantity demanded of a good the elasticity of demand for the good is A. negative, and the good is an inferior god. B. negative, and the good is a normal good C. positive, and the good is a normal good. D. positive, and the good is an inferior good Refer to Table 4-4. Which supply schedules the law of supply? A. Firm As only B. Firm Bs Cs and Firm only D. Firm Bs and Firm Ds only assume great x features a bad earnings elasticity of need. Therefore that great x is A. a standard great B. essential C. a substandard great D. an extravagance assume great x features a confident earnings elasticity of need. Therefore that great X might be I. a standard great II. essential III. A substandard great IV. an extravagance A. just B. and (ii) just C. (i), (ii), and (iv) just D. (ii) limited to which of after kinds of products would the earnings elasticity of need maintain positivity and reasonably huge? A. all substandard products B. all typical products C. products which is why there are numerous balances D. luxuries believe that a 4 per cent rise in earnings causes a 2 per cent rise in the amount demanded of a beneficial the elasticity of interest in the great is A. unfavorable, plus the effective is a substandard god. B. unfavorable, plus the great is a standard great C. good, plus the great is a standard great. D. good, plus the effective is a substandard great relate to Table 4-4. Which offer schedules regulations of offer? A. Firm the’s just B. Firm B’s C’s and company just D. Firm B’s and company D’s just

7. whenever a beneficial features unfavorable earnings elasticity of need it
shows that the interest in the great falls as earnings rises for eg.
Use of Public transport. These types of a beneficial is known as an
substandard great (C)
8. considering that the interest in the great increases as earnings rises its
surely a standard great. It might additionally be an essential great (whenever
the boost in interest in the great is lower than the percentage boost in
earnings) or an extravagance great (whenever need increases over the
percentage boost in earnings) with respect to the earnings elasticity of
need. This the clear answer is (C)
9. For deluxe products the boost in the need is more than the
percentage of boost in earnings. (d)
10. The earnings elasticity is good plus the great is a standard
great. This uses through the concept of a standard great.
11.The legislation of offer says that availability of a beneficial should
boost as cost of the great increases. Thus the company’s B and D
proceed with the legislation of offer. (D) For A the volume provided decreases
as cost of the great increases and C the amount at first
increases after that drops once more.

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