Abstain 8 the cost of downloading tv on the internet

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Unformatted text preview: llowing statements is true? [Pen. 1] A. When the Income Effect > Substitution Effect, leisure is a normal good because the representative worker’s wage elasticity is positive B. When the Income Effect > Substitution Effect & leisure is a normal good because the representative worker’s wage elasticity is negative C. When the Income Effect < Substitution Effect, leisure is a normal good because the representative worker’s wage elasticity is negative D. When the Income Effect < Substitution Effect, leisure is an inferior good because the representative worker’s wage elasticity is negative E. Abstain 8. The cost of downloading TV on the internet is R10 per episode. If your monthly demand curve for episodes is given by P= 30 ‐ 2Q, what is the maximum monthly subscription fee you would be willing to pay in order to be allowed access to internet downloads of TV episodes? [Pen. 0.5] A. B. C. D. E. R150 per month R125 per month R100 per month R75 per month Abstain 6 Question 9 relate to the diagram below. Tax/Rebate 9. Consider the following statements: [Pen. 0.5] (i) In the gr...
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This note was uploaded on 05/23/2011 for the course ECON 203 taught by Professor Jules during the Spring '11 term at University of Cape Town.

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