50.1K

Verified Solution

Link Copied!

1. What happens to the long-run equilibrium price and quantity ofcashew milk if almond milk becomes more expensive AND cashews (thatare used in the production of cashew milk) less expensive?

   		Price increases and the change in quantity is ambiguous.
   		Price decreases and the change in quantity is ambiguous.
   		Quantity increases and the change in price is ambiguous.
   		Quantity decreases and the change in price is ambiguous.

QUESTION 7

1. If the price elasticity of demand is 2, what is the percentagechange of price that is consistent with a decrease in quantitydemanded of 40%? [Type a whole number, no gaps. If the number ispositive don't put any sign, if negative put a minus in thefront.]

QUESTION 8

1. If the price elasticity of demand is 0.5, what is the percentagechange of quantity demanded that is caused by a 10% increase inprice? [Type a whole number, no gaps. If the number is positivedon't put any sign, if negative put a minus in the front.]

QUESTION 9

1. The income elasticity of demand for good X is -0.5. What can youinfer about good X?

   		The demand for good X is inelastic.
   		The demand for good X is elastic.
   		Good X is a normal good.
   		Good X is an inferior good.

QUESTION 10

1. The cross price elasticity of demand for good X and good Y is-1.2 and the income elasticity of demand for good X is 0.5. Whatcan you infer about good X?

   	a.	Good X and good Y are complements.
   	b.	Good X is a normal good.
   	c.	The demand of good X is inelastic.
   	d.	All of the above.
   	e.	(a) and (b) are correct
   	f.	(a) and (c) are correct.
   	g.	(b) and (c) are correct.