Given the following income elasticities of demand Product Hovies Dental services Clothing Incone Elasticity + 3.4...

 

 

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Given the following income elasticities of demand Product Hovies Dental services Clothing Incone Elasticity + 3.4 + 1.0 + 0.5 a. The values indicate that Oa 10 percent increase in income will increase the demand for clothing by 20 percent. al percent increase in income will increase the quantity of movies demanded by 3.4 percent. movies and dental services are normal goods, but clothing is an inferior good Oa 5 percent increase in the price of dental services will decrease the demand for dental services by 5 percent. b. If the income elasticity coefficient is negative, it means that O the good is inferior so that if income falls, the quantity demanded of the good will rise. • the good is inferior so that if income falls, the quantity demanded of the good will fall. O the good is normal so that if price falls, the quantity demanded of the good will rise. the good is inferior so that if price falls, the quantity demanded of the good will rise. Given the following income elasticities of demand Product Hovies Dental services Clothing Incone Elasticity + 3.4 + 1.0 + 0.5 a. The values indicate that Oa 10 percent increase in income will increase the demand for clothing by 20 percent. al percent increase in income will increase the quantity of movies demanded by 3.4 percent. movies and dental services are normal goods, but clothing is an inferior good Oa 5 percent increase in the price of dental services will decrease the demand for dental services by 5 percent. b. If the income elasticity coefficient is negative, it means that O the good is inferior so that if income falls, the quantity demanded of the good will rise. • the good is inferior so that if income falls, the quantity demanded of the good will fall. O the good is normal so that if price falls, the quantity demanded of the good will rise. the good is inferior so that if price falls, the quantity demanded of the good will rise.

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a a 1 percent increase in income will increase the number of movies demanded by 34 percent The ... View the full answer