Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Macroeconomics Expert

Problem:

Pick a product and Describe factors which affect its price, cross elasticity of demand, and income.

For illustration, if you pick table salt, you could argue that since its price is low relative to income and it is basically considered a necessity, it has extremely inelastic price elasticity of demand. It has low or close to zero income elasticity of demand since people don’t tend to consume more of it as income rises. The cross elasticity of demand between salt and salt substitutes would be positive since the products are substitutes. Foods that characteristically are employed with salt would be complements, and they would’ve negative cross elasticity of demand.

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M914091

Have any Question? 


Related Questions in Macroeconomics

In deciding to park in an illegal place any individual

In deciding to park in an illegal place, any individual knows that the probability of getting a ticket is p and the fine for receiving the ticket is f. Suppose that all individuals are risk averse (that is, U''(W) Will a ...

Define the says law and give your interpretationdoes

Define the Say's law and give your interpretation. Does everything have a price? Are there some things you would not do regardless of the price? (Remember: prices and money are not synonyms; prices may be non-monetary.) ...

Suppose the european union eu is investigating a proposed

Suppose the European Union (EU) is investigating a proposed merger between two of the largest distillers of premium Scotch liquor. Based on some economists' definition of the relevant market, the two firms proposing to m ...

1 the general manager gm of a car dealership is working on

1. The General Manager (GM) of a car dealership is working on a three year business plan. The GM expects inflation to rise over the next three years. - How will higher inflation affect the number of vehicles the dealersh ...

Discuss the view that an oligopolistic market structure

Discuss the view that an oligopolistic market structure provides a higher incentive to innovate than other market structures.

Explain why the kinked demand curve model of oligopoly

Explain why the "kinked demand curve" model of oligopoly represents a game theory approach to oligopolistic behavior.

The moroccan monetary authority is using a heavily managed

The Moroccan monetary authority is using a heavily managed float to keep the dirham at $0.12 per dirham. Under current foreign exchange market conditions, nonofficial supply and demand would clear at $0.15 per dirham. Us ...

Describe fiscal policy vs monetary policyexplain the

Describe Fiscal Policy vs Monetary Policy Explain the difference between the two, explain the importance of each. Why each are needed? Who is in charge of the Expansionary and Contractionary Policy of each? What tools do ...

You live in a small town with only one grocery store the

You live in a small town with only one grocery store. The demand curve for food in your town is given by -1/5Q. the grocery store has a total curve given by TC = 50 + 1.25Q A) What is the profit maximizing price and quan ...

Assignmentfor this submission you will need to find a topic

Assignment For this submission, you will need to find a topic of interest related to race and ethnicity, social change, or both. You may come up with a topic of your own, or choose from the list below: - white privilege, ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen