Suppose that the price elasticity of demand for a product is -1 and that the price elasticity of supply is +1 . Assume also that the income elasticity of demand is +2 . Then an increase in income of 10% will raise equilibrium price by:

a. 10%.
b. 5%.
c. 20%.
d. an annual amount that cannot be determined.

a

Economics

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The supply curve will be more elastic if

a. the good has few substitutes b. the time the producer has to adjust is long c. the time frame for adjusting to price changes is short d. demand is elastic e. demand is inelastic

Economics

Consider the following game. You roll a 6-sided die and each time you roll a 1, you get $50. For all other outcomes you pay $10. The $50 when you "win" and the -$10 when you "lose" are known as

A. payoffs. B. incentives. C. expected values. D. winnings and losings, respectively.

Economics