Question
Holly, Brian, Fred, Tracy, and Melanie have
income elasticities for veggie burgers as given below: Person Income elasticity of demand Tracy 2 Brian 1 Fred -0.75 Holly 0.1 Melanie -1.5 Who would respond the least in their purchase of veggie burgers in response to an increase in income?Solution
Holly's demand is the most inelastic, so she would respond the least. It is the magnitude of the elasticity that matters for how much demand changes, not the sign of the elasticity.
Suppose we regress the dependent variable y on four independent variables x1, x2, x3, and x4. After running the regression on n = 16 observatio...
Consider the following demand function of X for a commodity A
x= 10 + 0.10m/p
Money income (m) of X is Rs.120 and the price of A (p) is Rs...
Which of the following statements are correct about trilemma in monetary policy
A. It is related to closed economy model.
B. It involves...
Which of the following defines ambient standards in an environmental policy
Suppose we regress the dependent variable y on four independent variables x1, x2, x3, and x4. After running the regression on n = 16 observations, we ha...
Two people enter a bus. Two adjacent cramped seats are free. Each person must decide whether to sit or stand. Sitting alone is more comfortable than sit...
Which of the following applies to the physical linkage approach for the valuation of environmental benefits
The coefficient of regression of Y on X is byx = 1.2 , If A = (X-300)/4 and C = (Y-500)/6 find bCA
Which of the following statements are correct about trilemma in monetary policy
A. It is related to closed economy model.
B. It involves...
Two people enter a bus. Two adjacent cramped seats are free. Each person must decide whether to sit or stand. Sitting alone is more comfortable than sit...
