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- Explain how a change in price affects total expenditure by filling in each cell with the resulting change in total expenditure. Demand is Elastic Unit-elastic Inelastic Increase in Price Decr-consumer's expenditure minimization problem explain in detail both theoretically and practically ?7.If pizza is a normal good, then which of the following could be the value of incomeelasticity of demand?
- Suppose you observed that the consumption of organges increased sharply last year, however thet total consumer expenditure on oranges did not change. Did a supply shift, demand shift or both cause this? explain using graphsCompare the impact of a recession that reduces consumer income by 10 percent on theconsumption of technology goods and house rentals. Suppose that the income elasticity ofdemand for technology goods is 3 and the income elasticity of demand for house rentals is0.3. Based on your response, make a policy argument to support through governmentfunding either businesses or house rentals.Assume skateboards and rollerblades are substitute goods in consumption. If the cost of skateboard production increases we would expect the equilibrium price of rollerblades to, and the equilibrium quantity to Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. rise; rise b rise; fall c fall; rise fall; fall
- If demand is inelastic, does a drop in price raise or lower total expenditure by buyers? Explain why, using the meaning of "inelastic".The income effect of a price change predicts that a to a(n) in the consumption of rise; decrease; increase; inferior rise; decrease; decrease; inferior fall; decrease; decrease; normal fall; increase; increase; inferior goods. in a good's price will consumer purchasing power, leadingThe price of Pepsi changes from $4.75 to $1.00; initialy Yuval consumed 7 cups of pepsi per week and now consumes 18 cups of pepsi per week. Indicate whether the changes are negative or positive and keep 2 decimals. What is the percentage change in price? What is the percentage change in quantity? What is the Price Elasticity of Demand? (Enter a positive number) In this example, pepsi is an OElastic Olnelastic OUnitary Elastic good FI % %
- Rice is considered to be the staple food in the Philippines, so that when its price escalates, spending of the consumer will Select one: a. Decrease b. increase c. decrease rapidly d. increase rapidlyThe income effect is a.the change in demand due to changes in real income due to a price change of the goodb.the change in demand of both goods due to changes in real income due to a price change of the goodc.the change in income due to changes in the demand for the goodd.observable but only after all the purchases have been made.Explain how does adecrease in the current income y affect the consumer’s consumption-saving decision. In particular,explain: 1) How will current consumption c, future consumption c', and savings s change; 2) Arethere any substitution effect or income effect. Make sure you draw two figures, one for the borrowersand one for the lenders.