Top Posters
Since Sunday
c
6
l
5
h
5
h
5
k
5
t
5
h
4
B
4
w
4
g
4
e
4
b
4
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
Famwam Famwam
wrote...
Go to Answer
Posts: 456
Rep: 10 0
5 years ago

Question 1.

Studies show that the income elasticity of demand for wine is approximately five. What does this mean?

• A 1 percent decrease in the price of wine leads to a 5 percent increase in wine consumption.

• A 1 percent increase in income leads to a 5 percent increase in wine consumption.

• A 5 percent increase in income leads to a 1 percent increase in wine consumption.

• Wine is a relatively elastic good.

Question 2.

Which of the following items is likely to have the highest income elasticity of demand?

• a bus ride

• a meal at Taco Bell

• a vacation home in the Swiss Alps

• a tank of gasoline
Textbook 
Microeconomics

Microeconomics


Edition: 7th
Authors:
Read 63 times
1 Reply
Replies
Answer verified by a subject expert
cooldawg69cooldawg69
wrote...
#1
Posts: 375
Rep: 47 0
5 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here

Related Topics

Famwam Author
wrote...

5 years ago
Thank you, thank you, thank you!
jaray75
wrote...

Yesterday
This site is awesome
jcarter
wrote...

2 hours ago
Good timing, thanks!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1305 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 304
  
 212
  
 343
Your Opinion
What percentage of nature vs. nurture dictates human intelligence?
Votes: 436
Previous poll results: Who will win the 2024 president election?