Unformatted text preview: l_______-- l9. ..._-___WMW_..A_.___WM_M_._._"...-.__..____._ ........M......._.__] iSIIdp :" Intention kollhooni alkofahi Assignmom: Hw (3116-2 ante:10£2 109 Course: Eco 2301-05.
Q'I‘Ine: 12:24 PM Book: Hﬁbarth'Brieu: Microeconomics
If a ﬁrm is in an anti- trust court case accused of monopolizing a product. the ﬁrm would hire an economist to show i.» the cross -price elasticity of demand between the ﬁrm's good and another is negative.
' B the price elasticity of demand for the ﬁrm's good is highly inelastic.
_ " the income elasticity of the ﬁrm's good is inferior. M [1. the cross - price elasticity ofdcmand between the ﬁrm's good and another is positive. Barbara. the consummate hostess proudly announced as she served dessert. "A port is oitcrt the
perfect end to a meal, sipped with a piece of my scrumptious chocolate cake." Evidently. Barbara views .‘ ' A port and chocolate cake as substitutes to other desserts.
:‘ _18. port and chocolate cake as luxury items. A!" :1 port and chocolate cake as complementary goods. :1: port and chocolate cake as necessities. Which of the following is one reason why the income of small family farms has decreased over
A The demand for farm products is income inelastic.
1 tit. The US popuiation has increased greatly since 1950.
f Technology has increase farm productivity and market supply. .V‘ t The demand for farm products is price elastic. The demand for most farm products is relatively inelastic. All else constant, what is the elt‘ect on
farm revenues as a result of the introduction of new and better farm equipment which increases in
5" ‘ Farm revenues decrease.
Farm revenues could increase or decrease depending on the cost of this new equipment. Farm revenues increase. Farm revenues remain constant because consumers wiil not increase their consumption of
farm products by much. WM} ...
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- Fall '08
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