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Micro 2.5-Other Elasticities Video Choice

Last updated over 1 year ago
10 questions
1

Income elasticity measures how much a change in income will affect our quantity demand for goods.

1
  • Normal goods are not very responsive to changes in income
  • Normal goods are very responsive to changes in income
  • Inferior goods are not very responsive to change in income
  • Inferior goods are very responsive to changes in income
  • Inelastic
  • Elastic
1

What income elasticity coefficient is income unit elastic?

1

Sort these coefficient values.

  • +0.5
  • -0.5
  • +1.2
  • -3.0
  • Normal Good
  • Inferior Good
1
When a good is a normal good, an increase in income will cause an _____________ in the demand for that good.
Other Answer Choices:
increase
decrease
1

When two goods are related, the change in price of one good will affect the demand for the other.

1
When related goods are cross price _______ (1 word), then a change in the market price of related good X (no matter how big or how small) will have very little impact on the change in demand of a related good Y.
1

What is the formula for cross price elasticity coefficient?

1

Sort the following cross price elasticity coefficients.

  • 1
  • >1
  • <1
  • Cross Price Elastic
  • Cross Price Inelastic
  • Cross Price Elastic
1
When two goods are complements, they will create a _____________ cross price elasticity coefficient. When two goods are substitutes, they will create a ______________________ cross price elasticity coefficient.
Other Answer Choices:
positive
negative