28.If the demand for bananas is elastic, then an increase in the price of bananas willa. increase total revenue of banana sellers.b. decrease total revenue of banana sellers.c. not change total revenue of banana sellers.d. There is not enough information to answer this question. Show 1.Income elasticity of demand measures how 2.Suppose good X has a positive income elasticity of demand. This implies that good X could be(i)a normal good.(ii)a necessity.(iii)an inferior good.(iv)a luxury. 3.Suppose good X has a negative income elasticity of demand. This implies that good X is 4.Food and clothing tend to havea. small income elasticities because consumers, regardless of their incomes, choose to buyrelatively constantquantities of these goods.b. small income elasticities because consumers buy proportionately more of both goods athigher income levelsthan they buy at low income levels.c. large income elasticities because they are necessities.d. large income elasticities because they are relatively inexpensive. 5.Cross-price elasticity of demand measures how 6.The cross-price elasticity of demand can tell us whether goods are 7.If the cross-price elasticity of two goods is negative, then the two goods are 8.If two goods are substitutes, their cross-price elasticity will bea. positive.b. negative.c. zero.d. equal to the difference between the income elasticities of demand for the two goods. 9.Which of the following could be the cross-price elasticity of demand for two goods that arecomplements? Recommended textbook solutions Principles of Economics8th EditionN. Gregory Mankiw 1,335 solutions Introductory Business Statistics1st EditionAlexander Holmes, Barbara Illowsky, Susan Dean 2,174 solutions
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Is the demand for bananas elastic or inelastic?Answer and Explanation: It is given in the question that the demand for banana is elastic. Therefore, an increase in the price of bananas will decrease the total revenue of banana sellers. It is because when the demand for a good is elastic, any change in prices will change the demand by a higher proportion.
When demand is elastic a price increase will total revenues quizlet?If demand is inelastic, a price decrease will decrease total revenue, while an increase in price will increase total revenue. If demand is unit elastic, total revenue remains constant when prices rise or fall.
When demand is inelastic an increase in price will cause?a) If demand is price inelastic, then increasing price will decrease revenue.
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If the demand for bananas is elastic, then an increase in the price of bananas will
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