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.
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?
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