Top Posters
Since Sunday
w
3
w
3
e
3
3
r
3
b
2
M
2
V
2
f
2
c
2
c
2
K
2
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 66 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
Smart ... Thanks!
Alina01978
wrote...

Yesterday
This helped my grade so much Perfect
smi3
wrote...

2 hours ago
this is exactly what I needed
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1202 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 280
  
 200
  
 264