6. (W3L02) Which of the following statements illustrates income elasticity of demand? A. A 2 percent...

     

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6. (W3L02) Which of the following statements illustrates income elasticity of demand? A. A 2 percent fall in the price of peanuts increases Ralph's demand for almonds by 5 percent. B. A salary cut and no other changes has resulted in Mary buying less fast food. C. A rise in Annie's income by 5 percent decreases supply of canned fruits by 6 percent. D. Poor economic conditions are resulting in higher unemployment and lower aggregate demand. 7. (W3L04) Goods and services that use rare resources in their production have a supply. The greater the amount of time available after a price change, the A. high; smaller B. high; greater C. low; smaller D. low; greater elasticity of is the elasticity of supply. 6. (W3L02) Which of the following statements illustrates income elasticity of demand? A. A 2 percent fall in the price of peanuts increases Ralph's demand for almonds by 5 percent. B. A salary cut and no other changes has resulted in Mary buying less fast food. C. A rise in Annie's income by 5 percent decreases supply of canned fruits by 6 percent. D. Poor economic conditions are resulting in higher unemployment and lower aggregate demand. 7. (W3L04) Goods and services that use rare resources in their production have a supply. The greater the amount of time available after a price change, the A. high; smaller B. high; greater C. low; smaller D. low; greater elasticity of is the elasticity of supply.

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6 The anser is B A salary cut and no other changes has r... View the full answer