标题: Economics: Microeconomic Analysis - Reading 13: Elasticity - [打印本页]
作者: mayanfang1 时间: 2008-12-31 09:25 标题: [2009]Session 4: Economics: Microeconomic Analysis - Reading 13: Elasticity -
Q10. Marko Tskitishvili, an economist, has been studying the drop in the price of the average household computer in the U.S. and wonders if computers should still be considered a luxury good or if it has now become a normal good. He conducts a survey of 500 people and finds the following:
| 1998 | 2005 |
Avg. Household Income | $41,000 | $53,000 |
Avg. Computers Purchased per Household | 0.42 | 0.57 |
*Assume that 1998 is the base rate.
Based on the above data, Tskitishvili would conclude that a computer is a:
A) luxury good with income elasticity of 1.01.
B) luxury good with income elasticity of 1.18.
C) normal good with income elasticity of 0.84.
Q11. If quantity demanded declines 20% when incomes fall 3%, this good is:
A) a necessity.
B) a luxury good.
C) an inferior good.
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