Determine income elasticity of demand for mass transit

An income elasticity of demand for mass transit of 0.6 implies that the demand for mass transit is/will: (1) a necessity. (2) a luxury. (3) rise at a slower rate than income. (4) fall when income rises.

How can I solve my Economics problem? Please suggest me the correct answer.

View Complete Question

Related Questions in Microeconomics

Q : Public international law issues The

The following is a case problem around which the examination paper will be based. In preparation for the examination, you should study the problem scenario and identify the possible public international law issues which might arise, and how the law might be applied to

Q : Substitution effect on supply curves

One of the reasons for positive relationship among relative price and quantity supplied is the: (1) Technology effect, whereby bigger firms generate at lower average costs than the smaller firms. (2) Substitution effect, whereby firms switch among for

Q : Price charging by minimizing average

See a monopolist which cannot price discriminate but that maximizes profit. When this firm produces the level of output where is average cost at its minimum that will charge a price: (i) equal to marginal cost and generate zero economic profit. (ii) e

Q : Supply curve The short-run industry

The short-run industry supply curve is found by what?

Q : Kinked demand curve model of

The kinked demand curve model of oligopolistic pricing behavior reflects the concept which: (1) price hikes fail to accommodate small hikes in costs. (2) other firms ignore price hikes by single firms. (3) other firms match any price cuts by any singl

Q : Describe Break Even Price Describe

Describe Break Even Price in Economics for a purely competitive firm?

Q : Shift in the demand for loanable funds

Assume that this market is initially within equilibrium along with a supply of funds consequent to S0 and a demand for loanable funds consequent to I1. When the U.S. Department of the Treasury be

Q : Economies of Scope exploitation I have

I have a problem in economics on Economies of Scope exploitation. Please help me in the following question. A retailer providing multiple lines of clothes in a mall is attempting to exploit the economies of: (i) Scope. (ii) Structure. (iii) Scale. (iv) Information. (v

Q : Monopolist in the long run Within the

Within the long run, here a monopolist: (w) will produce a positive economic profit. (x) will produce an economic profit of zero. (y) may incur an economic loss. (z) will produce an economic profit of zero or greater.

Q : Unitarily price elastic of demand At a

At a price for $25, the demand for DVD games is around: (w) perfectly elastic. (x) perfectly inelastic. (y) unitarily elastic. (z) positively associated to supply.

Discover Q & A

Leading Solution Library

Avail More Than 1441651 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1931698
Asked

3,689

Active Tutors

1441651

Questions
Answered

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

Submit Assignment