27) Suppose the price elasticity of supply for shampoo is 20. If the price of shampoo increases by 0.7%, what would we expect to happen to the quantity of shampoo supplied?
a) Increase by 27%
b) Increase by 14%)
e) Increase by 13%
d) Decrease by 13%
28)
e) Decrease by 27%
If pasta is a Giffen good, then....
a) pasta is also a normal good.
b) pasta is also a luxury good.
e) an decrease in the price of pasta will increase the quantity demanded. d) an increase in the price of pasta will increase the quantity demanded. e) pasta must make up a small portion of consumers' total expenditures.
20)
An inferior good in which the income effect dominates the substitution effect is called....
a) a normal good.
b) a luxury good.
30)
a) a Giffon good.
d) a mass-produced good.
e) a favored good.
The cross elasticity of demand measures the responsiveness of the quantity demanded of a particular good to changes in the prices of
a) its complements but not its substitutes.
b) Its substitutes but not ita complements.
c) its substitutes and its complements.
d) neither its substitutes nor its complements. e) None of the above..