Income elasticity of demand when national income rises

When diamond sales jump from 3 to 13 million carats yearly while a strong recovery increases national income from $12.0 trillion to $13.2 trillion, in that case the income elasticity of demand for diamonds is: (1) 0.76. (2) 1.52. (3) 3.04. (4) 6.07. (5) 13.125

Please choose the right answer from above...I want your suggestion for the same.

View Complete Question

Related Questions in Microeconomics

Q : Minimum Wage Laws-Group least likely to

Can someone help me in finding out the right answer from the given options. The group which is least likely to be helped by the minimum wage law is: (1) African-American teenagers. (2) Skilled industrial workers. (3) Members of the unions. (4) Experienced construction

Q : Purely-competitive and constant-cost

When this firm is typical into this purely-competitive of constant-cost industry, as in demonstrated figure in long-run equilibrium for cranberries will be attained at a market price of: (i) P1. (ii) P2. (iii) P<

Q : Labor Union History problem Can someone

Can someone please help me in finding out the accurate answer from the following question. The labor unions have tended to be most successful in the organizing: (1) Blue collar workers. (2) Clerical workers. (3) Professionals. (4) White collar workers.

Q : Complementary Goods-Purchasing goods

Subsequent to Judith buys an American eagle shirt at the mall for 50 percent off, she purchases the matching purse, skirt and earrings. Such extra purchases are illustrations of: (i) Complementary goods. (ii) Substitute goods. (iii) Numbers and ages of the buyers. (iv

Q : Concentration ratio Explain the concept

Explain the concept of a concentration ratio. Is the concentration ratio in a monopolistically competitive industry likely to be higher than for a perfectly competitive industry

Q : Right-to-Work Laws The states which

The states which have ‘Right to Work’ laws, and collective bargaining agreements: (i) Can’t need all the employees to join a union in a certain period after being hired. (ii) Generally specify the number of employees a firm should hire. (iii) Should

Q : Consequence of foreign exchange rate

What are consequence of foreign exchange rate risk and how do this risk be mitigated?

Q : Profit-maximizing level of output When

When LoCalLoCarbo, the favorite corporation of fad dieters, produces adequate output to minimize its average total costs that will: (1) produce more than the profit-maximizing level of output. (2) concurrently minimize its average variable cost. (3) p

Q : Theory of mercantilism Explain what was

Explain what was the theory of mercantilism?

Q : Kinked demand curves and sticky prices

Sticky prices within oligopoly markets are: (w) predicted by the kinked demand curve model. (x) substantiated by many statistical studies. (y) most common for highly differentiated products. (z) a result of price discrimination.

Discover Q & A

Leading Solution Library

Avail More Than 1451964 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1951777
Asked

3,689

Active Tutors

1451964

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment