# If the income elasticity for chocolate chip cookies

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Topic: Income Elasticity of DemandSkill: Analytical169) About six months ago, Pat lost the job as vicepresident of a local bank. Since losing the job, Patstill has the Sunday newspaper delivered everyweek. For Pat, the Sunday newspaper is
normal good and ____ for an inferior good.
Answer: ATopic: Income Elasticity of DemandSkill: Analytical*170) Peter’s monthly income increases from \$1,500 to\$1,600. As a result, he increases the number ofCDs he buys per month from 2 to 3. Peter’s de-mand for CDs is
Topic: Income Elasticity of DemandSkill: Analytical*171) Paul’s monthly income decreased from \$2,500 to\$2,300. As a result, he decreased the number ofDVDs he rents per month from 5 to 4. Paul’sdemand for DVD rentals is
168) If the income elasticity for chocolate chip cookiesis 1.84, then chocolate chip cookies areA)a normal good and income inelastic.B)a normal good and income elastic.C)an inferior good and income inelastic.D)an inferior good and income elastic.B)price inelastic.C)income elastic.Topic: Income Elasticity of DemandSkill: Recognition172) The income elasticity of demand is ____ for a
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Chapter 3 / Exercise 1
Macroeconomics: Private and Public Choice
Gwartney/Stroup/Sobel/Macpherson
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1 3 8C H A P T E R 4Topic: Income Elasticity of DemandSkill: Analytical173) Last year, Jack ‘s income was \$15,000 and hebought 50 pounds of potato chips. This year hisincome is \$18,000 and he buys 55 pounds of po-tato chips. Therefore, Jack’sA)income elasticity of demand for potato chips is0.52.B)price elasticity of demand for potato chips is0.52.C)income elasticity of demand for potato chips is1.66.D)price elasticity of demand for potato chips is1.66.
Answer: ATopic: Income Elasticity of DemandSkill: Conceptual174) The income elasticity of demand is defined as thepercentage change in
Topic: Income Elasticity of DemandSkill: Analytical

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Term
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Professor
LEE
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elastic demand
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Chapter 3 / Exercise 1
Macroeconomics: Private and Public Choice
Gwartney/Stroup/Sobel/Macpherson
Expert Verified