Last year, after Shirley received a 14 percent pay increase, she increased the quantity of pork chops she purchased by 6 percent. Hence, her income elasticity of demand for pork chops equals
A) 0.43.
B) -0.43.
C) 2.33.
D) -2.33
A
You might also like to view...
Theoretically, the market demand for a public good is found by
a. vertically addingthe MEC and MPCfunctions b. overcomingfree-ridership and vertically summingthe price responses for each quantity c. adding horizontally the marginal benefits received by each consumer at every price level d. summing the quantities each person is willing and able to buy at each and every price
The Solo Coal Mine is the only employer in the small town of Way out there. The market supply of coal miners is Qs = 0.02W - 200 and Qd = 500 - 0.02W, where W is the annual wage of a coal miner and Q is the number of coal miners. What is the wage required to hire the profit maximizing number of workers?
A. $25,000 B. $50,000 C. $20,000 D. $15,000
Melanie decided to sleep in today rather than attend her 9 a.m. economics class. According to economic analysis, her choice was
a. irrational, because economic analysis suggests you should always attend classes that you have already paid for. b. irrational, because oversleeping is not in Melanie's self-interest. c. rational if Melanie has not missed any other classes. d. rational if Melanie values sleep more highly than the benefit she expects to receive from attending the class.
Automatic stabilizers are designed to
A. simplify the tax system. B. promote global trade. C. stabilize the bi-partisan budget process. D. moderate changes in disposable income.