Another commonly used algebraic form for a demand function is the semi-logarithmic functional form, ln(Q) = a - bP + cI, where Q is quantity demanded, P is the product price, and I is income
Here, 100 c represents the percentage change in quantity demanded given a one unit increase in income. For a normal good, we should expect the value of c to be: A) positive.
B) negative.
C) positive or negative.
D) We do not have enough information to answer this question.
A
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Capital flows between countries are smaller than in past decades in absolute terms
Indicate whether the statement is true or false
Price elasticity of demand refers to the ratio of the:
A. percentage change in price of a good in response to a percentage change in quantity demanded. B. percentage change in price of a good to a percentage increase in income. C. percentage change in the quantity demanded of a good to a percentage change in its price. D. percentage change in the quantity demanded of a good to a percentage change in income.
Recall the Application about French restaurants and the Value Added Tax (VAT) to answer the following question(s).Recall the Application. According to the Application, how would lowering the VAT on restaurants with sit-down meals result in more employment in the industry?
A. A lower VAT lowers the price of the meals, increasing the quantity demanded for meals and increasing the demand for workers. B. A lower VAT raises the price of the meals, increasing the quantity demanded for meals and increasing the demand for workers. C. A lower VAT lowers the price of the meals, increasing the tips that workers received and inducing these workers to eat out. D. A lower VAT raises the government's tax revenues, allowing the government to purchase more meals and hiring more workers.
A bank has $100 million in assets and 50 percent of its assets are interest sensitive. The bank has $75 million in liabilities, 50 percent of which are interest sensitive. What is the bank's gap between interest-sensitive assets and liabilities?
What will be an ideal response?