Label each of the following goods as a luxury, necessity, or inferior good. Income elasticity is given

Question:

Label each of the following goods as a luxury, necessity, or inferior good. Income elasticity is given for each.

a. Dental services: 1.6

b. Beer: 0.8

c. Baloney: −0.15

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics

ISBN: 9781260507140

11th Edition

Authors: David Colander

See More Books

Question Posted: Mar 12, 2024 06:02 AM

See More Questions

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
CANMNMM January of this year. (a) Each item will be held in a record. Describe all the data structures that must refer to these records to implement the required functionality. Describe all the...
Predictive text entry systems are familiar on touch screens and mobile phones. This question asks you to consider how the same principles might be used in a programming editor for creating Java code....
JinsAppliances has a return-on-assets (investment) ratio of 8 percent. a. If the debt-to-total-assets ratio is 40 percent, what is the return on equity? b. If the firm had no debt, what would the...
In the previous problem, suppose that vendor A provides a new price-discount schedule for component 3. This one is an "incremental" discount, as opposed to an "all-units" discount, as follows: Unit...
Explain the association between the return on equity and the gearing ratio.
The boiling point diagram of a binary mixture can be represented with the help of the (a) Temperature versus volume plot (b) Pressure versus volume plot (c) Pressure versus composition plot (d)...
Exceptional Electronics began operations September 1, 2016. The firm sells its merchandise for cash and on open account. Sales are subject to a 7 percent sales tax. During September, Exceptional...
The cash account in the current asset section of the December 31, 2015 balance sheet of King Company consists of: Cash in Banks Cash restricted for additions to plant (expected to be disturbed in...
Economists have estimated the following transportation elasticities. For each pair, explain possible reasons why the elasticities differ. a. Elasticity of demand for buses is 0.23 during peak hours...
If there were only two goods in the world, can you say whether they would be complements or substitutes? Explain your answer.
An article in the Economist observes that Chinas decades of [current account] surpluses reflected the fact that for years it saved more than it invested. Briefly explain why a countrys current...
Suppose the exchange rate is $1.59/, the euro-denominated continuously compounded interest rate is 6%, the U.S. dollar-denominated continuously compounded interest rate is 5%, and the exchange rate...
You estimate that the dividend of stock AB will be $1.05/ share at YE 2024, then continue to grow in perpetuity at 3% per year. If AB's discount rate is 8%,what do you estimate the present value of...
Given that f(x)=x+1 and g(x) = x-x, find (f+g)(-2), if it exists.
Suppose the 30 day T-Bill rate is 4% and the expected return of the market is 9%. If the Beta of NIO company's stock is 0.3 what should be the required rate of return of the stock? (Round your answer...
Y ou decided to deposit 2 0 0 0 for the next 3 years into an account that earn compound interest annually at a rate of 3 . 5 % . show what happens year by year ?
Provided below is a partial work sheet for Ardery Advising. REQUIRED During January, Ardery made an additional investment of $1,200. Prepare an income statement, statement of owner's equity, and...
Match each of the key terms with the definition that best fits it. _______________ A record of the sequence of data entries and the date of those entries. Here are the key terms from the chapter. The...
1. The -industry argument is often given to provide a rationale for tariffs for new firms. 2. Knowledge gained during production is known as by doing. 3. If only one firm can exist in a market, a...
1. The -industry argument is often given to provide a rationale for tariffs for new firms. 2. Knowledge gained during production is known as by doing. 3. If only one firm can exist in a market, a...
1. The -industry argument is often given to provide a rationale for tariffs for new firms. 2. Knowledge gained during production is known as by doing. 3. If only one firm can exist in a market, a...
A sample of gas is compressed by a piston. (See the figure below.) Gas The piston does 450 J of work on the gas. At the same time, the gas absorbs 130 J of heat from the surroundings. What is the...
A student walking to class on a cold day ( T o = 5 C) find a silver ring with an inner diameter of D = 1.7 cm. The silver has a coefficient of linear expansion of = 19.7 10 -6 1/C. Part A. Input an...
On a hot dry day, evaporation from a lake has just enough heat transfer to balance the 1.00 kW/m 2 of incoming heat from the Sun. How many kilograms of water evaporate in 0.85 h from each square...

Label each of the following goods as a luxury, necessity, or inferior good. Income elasticity is given

Question:

Step by Step Answer:

a Luxur...View the full answer

Microeconomics

Students also viewed these Business questions