Ginger earns an income of $2,000 a week and goes out to dinner 4 times a week. If her income increased to $2,100 she would go out to dinner 5 times a week. Ginger's income elasticity of demand is
A. -0.22
B. 0.22
C. 4.56
D. 2.28
Answer: C
You might also like to view...
Refer to Figure 16-6. With a two-part pricing scheme - a monopoly price for classes and a one-time membership fee - what is the amount of producer surplus Sensei will earn?
A) an amount equal to the area A + B + C + D + H + G B) an amount equal to the area A + B + C + D C) an amount equal to the area E + F D) an amount equal to the area A + C + H
If policy makers do nothing in response to an inflationary gap, what will happen?
a. a rapid movement toward lower unemployment and higher inflation b. a rapid movement toward lower unemployment and lower inflation c. a slow movement toward higher unemployment and higher inflation d. a slow movement toward lower unemployment and lower inflation
The signaling theory of education maintains that workers who complete specific levels of education signal their high productivity to potential employers
a. True b. False Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1. Disposable income (DI) includes transfer payments like Social Security benefits and unemployment benefits. 2. In an economy is experiencing inflation and output growth, nominal GDP will rise faster than real GDP. 3. If nominal GDP in one year is $5,000 billion and the price index is 135, then the real GDP that year would be $3,704 billion. 4. To adjust nominal GDP for a given year in order to obtain real GDP, we multiply the nominal GDP by the price index. 5. The value of a price index in the base year is always 100.