Let pi and p2 be the prices of good I and good 2, respectively, and let I be income. Which of the following is true of the following demand curve: q, = 60 – 3p; – 2p2 + 21? a. good 1 is inferior, and good 1 and 2 are substitutes. b. good I is inferior, and good 1 and 2 are complements. c. good I is normal, and good 1 and 2 are substitutes. d. good 1 is normal, and good I and 2 are complements. e. good 1 is normal, and good I and 2 are independent. 15. A perfectly competitive market has the following demand and supply: Q° = 90 – 5p Qs = 5p Suppose the government introduces a $4 subsidy on each unit sold. The total subsidy cost for the government will be a. $110 b. $140 c. $220 d. $330 e. $605
Let pi and p2 be the prices of good I and good 2, respectively, and let I be income. Which of the following is true of the following demand curve: q, = 60 – 3p; – 2p2 + 21? a. good 1 is inferior, and good 1 and 2 are substitutes. b. good I is inferior, and good 1 and 2 are complements. c. good I is normal, and good 1 and 2 are substitutes. d. good 1 is normal, and good I and 2 are complements. e. good 1 is normal, and good I and 2 are independent. 15. A perfectly competitive market has the following demand and supply: Q° = 90 – 5p Qs = 5p Suppose the government introduces a $4 subsidy on each unit sold. The total subsidy cost for the government will be a. $110 b. $140 c. $220 d. $330 e. $605
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter20: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 3CQ: Recent research confirms that the demand for cigarettes is not only inelastic, but it also indicates...
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