Solved by verified expert :2) Use the above figure. Which graph
depicts a normal good?
A) A
B) B
C)
C
D) D
Chapter 21 Demand and Supply
Elasticity 609
3)
An inferior good has an income elasticity of demand that
is
A)
positive.
B)
negative.
C)
positive but less than 1.
D)
zero.
4)
For most goods and services the income elasticity of
demand is
A)
negative.
B)
positive.
C)
invisible.
D)
inverse.
Pounds of Artisan
Jars of
Period
Income/Week
Bread Sold
Jam Sold
1
$250
2
10
2
$500
5
8
5)
Use
the above table. The income elasticity of artisan bread is
A)
1.285.
B)
0.780.
C)
0.012.
D)
8.330.
6)
Use the above table. Based on the information in the
table, artisan bread is a(n)
A)
normal good.
B)
necessary good.
C)
inferior good.
D)
negative good.
610 Miller· Economics Today, Fourteenth
Edition
7) Use the above table. The income
elasticity of jam is
A) -0.33.
B) 0.33.
C)
3.00.
D) -3.00.
8) Use the above table. Based on the
information in the table, jam is a(n)
A) normal good.
B) necessary good.
C)
inferior
good.
D) negative good.
9) If your income rises by 25 percent
and, as a result, you buy fewer packages of Ramen Noodles, then Ramen Noodles
are a(n)
A) substitutes.
B) normal good.
C)
complement.
D) inferior good.
10) If your income rises by 15 percent
and, as a result, you buy more steak, then steak is a(n)
A) substitute.
B) normal good.
C)
complement.
D) inferior good.
Chapter 21 Demand and Supply
Elasticity 611
11) Chad?s income went from $1000 per
week to $1500 per week. As a result he increased his consumption of steak from
1 pound a week to 3 pounds a week. Based on his consumption patterns, the
income elasticity of steak for Chad is
A)
2.50.
B)
-.50.
C)
.50.
D)
-1.50.
