1. Suppose that your consumption of candy bars is 4 a week at an income level of $500 a week, but when your income incre
Posted: Wed Jul 06, 2022 5:58 am
1. Suppose that your consumption of candy bars is 4 a week at anincome level of $500 a week, but when your income increases to $600a week you only consume 2 candy bars.
a. What is your income elasticity of demand for candy bars?
b. Are candy bars inferior or normal good?
2. Consider the demand curve illustrated below:
What is the price elasticity of demand for this good when movingfrom point A to point B? Is demand elastic, inelastic, or unitelastic?
2 Q₁ Q B Q₂ P₁ = 100 P₂ = 50 Q,= 5 Q₂= 20 D
a. What is your income elasticity of demand for candy bars?
b. Are candy bars inferior or normal good?
2. Consider the demand curve illustrated below:
- 1 Suppose That Your Consumption Of Candy Bars Is 4 A Week At An Income Level Of 500 A Week But When Your Income Incre 1 (14.49 KiB) Viewed 19 times
2 Q₁ Q B Q₂ P₁ = 100 P₂ = 50 Q,= 5 Q₂= 20 D