The demand for good X has been estimated to be lnQXd = 0 – 2.5 lnPX + 4 lnPY + lnM . The advertising elasticity of good X is
  • 0.0
The demand for good X has been estimated to be lnQXd = 100 – 2.5 lnPX + 4 lnPY + lnM. The income elasticity of good X is
  • 1.0
 The demand for good X has been estimated to be lnQXd = 100 – 2.5 lnPX + 4 lnPY + lnM.The cross price elasticity of demand between goods X and Y is
  • 4.0
 The demand for good X has been estimated to be lnQXd = 100 – 2.5 lnPX + 4 lnPY + lnM.The own price elasticity of good X is
  • -2.5

Non-fed ground beef is an inferior good. In economic booms, grocery managers should

  • Reduce their orders of non-fed ground beef

 Suppose the income elasticity for transportation is 1.8. Which of the following is anincorrect statement?

  • Expenditures on transportation will fall less rapidly than income falls
Since most consumers spend very little on salt, a small increase in the price of salt will
  • Not reduce quantity demanded by very much

 If the short-term own price elasticity for transportation is estimated to be -0.6, then long-term own price elasticity is expected to be

  • Less than -0.6

Which of the following is not the important factor that affects the magnitude of the own price elasticity of a good?

  • Supply of the good

The demand for good X is estimated to be QX d = 10, 000 – 4PX + 5PY + 2M + AX, where PX is the price of X, PY is the price of good Y, M is income and AX is the amount of advertising on X. Suppose the present price of good X is $50, PY = $100, M = $25,000, and AX = 1,000 units. Based on this information, good X is

  • A normal good

The demand for good X is estimated to be QX d = 10, 000 – 4PX + 5PY + 2M + AX, where PX is the price of X, PY is the price of good Y, M is income and AX is the amount of advertising on X. Suppose the present price of good X is $50, PY = $100, M = $25,000, and AX = 1,000 units. Based on this information, the income elasticity of good X is

  • 0.82

The demand for good X is estimated to be QX d = 10, 000 – 4PX + 5PY + 2M + AX, where PX is the price of X, PY is the price of good Y, M is income and AX is the amount of advertising on X. Suppose the present price of good X is $50, PY = $100, M = $25,000, and AX = 1,000 units. Based on this information, goods X and Y are

  • Substitutes

The demand for good X is estimated to be QX d = 10, 000 – 4PX + 5PY + 2M + AX, where PX is the price of X, PY is the price of good Y, M is income and AX is the amount of advertising on X. Suppose the present price of good X is $50, PY = $100, M = $25,000, and AX = 1,000 units. Based on this information, the cross-price elasticity between goods X and Y is?

  • 0.008
 The demand for good X is estimated to be QXd = 10, 000 – 4PX + 5PY + 2M + AX, where PX is the price of X, PY is the price of good Y, M is income and AX is the amount of advertising on X. Suppose the present price of good X is $50, PY = $100, M = $25,000, and AX = 1,000 units. Based on this information, we know that the demand for good X is
  • Inelastic
The demand for good X is estimated to be QXd = 10,000 – 4PX + 5PY + 2M + AX, where PXis the price of X, PY is the price of good Y, M is income and AX is the amount of advertisingon X. Suppose the present price of good X is $50, PY = $100, M = $25,000, and AX = 1,000units. What is the own-price elasticity of demand for good X?
  • -0.003
The demand for good X is estimated to be QXd = 10,000 – 4PX + 5PY + 2M + AX where PX is the price of X, PY is the price of good Y, M is income and AX is the amount ofadvertising on X. Suppose the present price of good X is $50, PY = $100, M = $25,000, andAX = 1,000 units. What is the quantity demanded of good X?
  • 61,300
The demand for good X is estimated to be QXd = 10,000 – 4PX + 5PY + 2M + Awhere PX is the price of X, PY is the price of good Y, M is income and AX is the amount ofadvertising on X. Suppose the present price of good X is $50, PY = $100, M = $25,000, andAX = 1,000 units. What is the demand curve for good X?
  • 61,500 - 4PX