Assignment #3

Assignment #3 - Name_ Student ID_ Econ 003: Microeconomics...

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Name___________________________________ Student ID_______________________________ Econ 003: Microeconomics Assignment # 03 1. In figure 1, demand curve shifts from D to D* because consumers’ incomes go up by 100%. One can look at the figure and say that A. Income elasticity of demand is greater than one. B. The figure illustrates the case of an inferior good. C. Income elasticity of demand is less than one. D. The figure illustrates the case of a luxury good. E. None of the above is true. 2. Cross price elasticity of demand (%change in the quantity demand of one good divided by %change in the price of a related good) is: A. Positive if the goods are normal. B. Negative if the goods are substitutes. C. Negative if the goods are complements . D. Positive if the goods are unrelated. E. Negative if the goods are normal goods.
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3. Price elasticity of demand depends on: A. Availability of substitutes. B. Passage of time (long run or short run).
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This test prep was uploaded on 04/10/2008 for the course ECON 003 taught by Professor Das during the Spring '08 term at UC Riverside.

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Assignment #3 - Name_ Student ID_ Econ 003: Microeconomics...

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