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Bruno initially consumes 10 tomatoes. Then the price of tomatoes increasesby 25 percent.Thesubstitutioneffect is -4 tomatoes and thetotaleffect is -1tomatoes, such that after the price
Bruno initially consumes 10 tomatoes. Then the price of tomatoes increasesby 25 percent.Thesubstitutioneffect is -4 tomatoes and thetotaleffect is -1tomatoes, such that after the price increase 9 tomatoes are consumed.Whichtwoofthe following aretrue?i) Tomatoes are Giffen (i.e., violate the law of demand) goods.ii) For Tomatoes income> 0.iii) Price elasticity of demand for tomatoes is inelastic.iv) Price elasticity of demand for tomatoes is elastic.v) Tomatoes are inferior goods.vi) The elasticity of supply of tomatoes is inelastic
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