If income in Africa increases by 4% and demand for poultry increases by 8%, then the income elasticity for poultry demand in Africa is projected to be:
a. -0.8
b. 0.8
c. 2
d. 1.25
e. 1.50
c. 2
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Financial crises in advanced economies might start from a
A) debt deflation. B) currency crisis. C) mismanagement of financial innovations. D) currency mismatch.
When bad drivers line up to purchase collision insurance, automobile insurers are subject to the
A) moral hazard problem. B) adverse selection problem. C) assigned risk problem. D) ill queue problem.
Used cars sell for much less than new cars because
A) of imperfect competition in the automobile industry. B) buyers know much more about the quality of used cars than sellers do. C) sellers know much more about the quality of used cars than buyers do. D) physical depreciation of used cars is very high. E) of licensing arrangements by the government.
If the price of ice cream increases and the quantity demanded decreases, economists would describe this as:
a. a change in demand b. a change in quantity demanded. c. a change in consumer income. d. a change in one of the variables that shift demand.