Question
Hi, I need help with my microeconomics questions: 1) The quantity of salt demanded tends to be unresponsive to changes in its price because salt
Hi, I need help with my microeconomics questions:
1) The quantity of salt demanded tends to be unresponsive to changes in its price because salt is generally considered:
a) a commodity.
b) a necessity and is inexpensive.
c) a luxury and is inexpensive.
d) a necessity and is expensive.
2) Because of this,
a) substitution and income effects for its demand are very large.
b) substitution effects are large and the income effects for its demand are very small.
c) substitution effects are small and the income effects for its demand are large.
d) substitution and income effects for its demand are very small.
3) Can the price-consumption curve for a normal good ever be downward-sloping?
Answer: Yes or No.
4) Changes in the distribution of income across consumers can affect the market demand for a product because
a) the rich have more money to buy all goods.
b) the poor have very little money.
c) the demand for certain types of goods depends on income.
d) goods are supplied to the market when they are demanded.
5) To get the market demand curve for a product, we add individual demand curves horizontally rather than vertically because
a) the value of the jointly consumed product.
b) the quantity that the average person demands.
c) total revenue for every quantity demanded.
d) this will sum individual demand curves (quantities, not prices).
Thank you! There is only one correct answer for each question.
NEED EXPLAIN IN PROPER FORMAT
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