Which of the following leads to a more inelastic price elasticity of supply? I. the use of inputs that are easily obtained II. a high degree of substitutability between inputs III. a shorter time period in which to supply the good A. I only B. II only C. III only D. I and II only E. I, II, and III

If Kylie buys 200 unit s of good X when her income is $20,000 and 300 units of good X when her income increases to$25,000, her income elasticity of demand, using the midpoint method, is A. 0.06 B. 0.5 C. 1.65 D. 1.8 E. 2.00

If the cross-price elasticity between two goods is negative, this means that the two goods are A. substitutes. B. complements. C. normal. D. inferior. E. luxuries.

A supply curve with a slope of zero has a price elasticity of supply that approaches a. 0 . b. infinity. c. 1 . d. -1 . e. 100 .

Assume the price of an inferior good increases.

In what direction will the income effect change the quantity demanded? Explain.

he following scenarios describe the price elasticity of supply and demand for a particular good. In which scenario will a subsidy increase consumption the most? Choose only one.

b. Inelastic demand, inelastic supply.

Find a basis for the indicated subspace of $R^3$ with the plane with equation $x-2 y+5 z=0$.

Find the number that makes the equation true. 2.6+__-8.7=3.2

Which of the following factors would not affect the own-price elasticity of a good?

A. time

B. price of an input

C. available substitutes

D. expenditure share

Income elasticity of demand is defined to be the percentage change in quantity purchased divided by the percentage change in real income.

a. Write a formula for income elasticity of demand $E$ in terms of real income $I$ and quantity purchased $Q$.

b. In the United States, which would you expect to be greater, the income elasticity of demand for cars or for food? Explain your reasoning.

c. What do you think is meant by a negative income elasticity of demand? Which of the following goods would you expect to have $E<0$ : used clothing, personal computers, bus tickets, refrigerators, used cars? Explain your reasoning.

d. Read an article on income elasticity of demand and write a paragraph on why the income elasticity of demand for food is much larger in a developing country than in a country such as the United States or Japan.*

When there are more substitutes for a product, the _____ for the product is _____.
a. demand; less price elastic
b. income elasticity; smaller
c. income elasticity; greater
d. demand; more price elastic

Which of the following is true if the price elasticity of demand for a good is zero? A. The slope of the demand curve is zero. B. The slope of the demand curve is one. C. The demand curve is vertical D. The demand curve is horizontal. E. The price of the good is high.

Which of the following would cause the demand for a good to be relatively inelastic? A. The good has a large number of close substitutes B. Expenditures on the good represent a large share of consumer income. C. There is ample time to adjust to price changes. D. The good is a necessity E. The price of the good is in the upper left section of a linear demand curve

After Chelsea 's income increased from $12,000 to$18,000 a year, her purchases of music downloads increased from 10 to 40 music downloads a year. Calculate Chelsea's income elasticity of demand for music downloads using the midpoint method.