1 answer

If the income elasticity of tomatoes is estimated to approximate +0.25, what would you expect to...

Question:

If the income elasticity of tomatoes is estimated to approximate +0.25, what would you expect to happen to the consumption of tomatoes as personal income rises?


Answers

Consumption and demand are related – the increasing demand increases its consumption.

Demand depends on income elasticity of demand (Ied) – the increasing income increases demand.

Given, Ied is 0.25.

Suppose income of a consumer increases by 10%.

By the formula as below:

Ied = Percentage change in QD / Percentage change in income

0.25 = Percentage change in QD / 10 [by omitting % sign]

0.25 × 10 = Percentage change in QD

Percentage change in QD = 2.5%

Therefore, consumption increases by the increase in personal income. This happens because the income elasticity is positive.

.

Similar Solved Questions

1 answer
Emily Smith files her tax return on the basis of fiscal year. Her records show that...
Emily Smith files her tax return on the basis of fiscal year. Her records show that she received income in November 2017 and February 2018 from which there was backup withholding ($100 and $50, respectively). Emily takes credit for what amount of backup withholding on her tax return for the fiscal y...
1 answer
1. Consider the following java code snippet. x = 5; X++; Give equivalent MIPS Assembly. Assume...
1. Consider the following java code snippet. x = 5; X++; Give equivalent MIPS Assembly. Assume compiler will keep x in $50 ($16). 2. What will be in $8 after executing the following statements? addi $8, $0,5 add $8, $8, $8...
1 answer
Question 6 According to a recent survey, 17% of the population is left handed. If you...
Question 6 According to a recent survey, 17% of the population is left handed. If you randomly select 6 people what is the probability that at least one of them is left handed? Round your answer to three decimal places. Question 71 pts If  P ( A ) = 0.45  then for any event ...
1 answer
Chapter 1 Drug Regulation, Actions ation Actions and Respons 3 an: Drug Administration Routes Identification: Drug...
Chapter 1 Drug Regulation, Actions ation Actions and Respons 3 an: Drug Administration Routes Identification: Drug Admi istration route is described. Then specify whether the w hich we administre mons, punteral, or enteral 35. A tablet that is swallowed through the mouth 36. A patch that is applied ...
1 answer
The first 3 photos are true or false questions. Question 1 4 pts The total mechanical...
The first 3 photos are true or false questions. Question 1 4 pts The total mechanical energy of a particle in a Newtonian gravitational field can be NEGATIVE True False Question 2 4 pts Charles Coulomb was the first to measure the gravitational constant in Newton's Univer...
1 answer
A 90 kg skier at the top of a 400 m icy hill slides down, through...
A 90 kg skier at the top of a 400 m icy hill slides down, through a 20 m patch of snow (µk= 0.25) and hits a 20 m long jump ramp at a 45° incline.   a) (10 points)  How far from the edge of the ramp does the skier land (m)? b) (5 points) How high will he get of the grou...
1 answer
2. Metallic sodium adopts a bcc structure with density 970 kg m. a. Calculate the fraction...
2. Metallic sodium adopts a bcc structure with density 970 kg m. a. Calculate the fraction of the unit cell that is occupied by atoms in a bcc lattice. Hint: Calculate: i) the total volume of the unit cell ii) the number of spheres per unit cell iii) the volume occupied by those spheres iv) the rati...
1 answer
PLEASE SHOW ALL STEPS AND IN BETWEEN STEPS THANK YOU Problem 3. In Fig. 1, G(s)-...
PLEASE SHOW ALL STEPS AND IN BETWEEN STEPS THANK YOU Problem 3. In Fig. 1, G(s)- results in a PM (phase margin) of 40° s-K is a constant. Find the value o s(s+4 and Dl...
1 answer
On January 1, Year 1, Flax Co. purchased a machine for $528,000 and depreciated it by...
On January 1, Year 1, Flax Co. purchased a machine for $528,000 and depreciated it by the straight-line method using an estimated useful life of 8 years with no salvage value. On January 1, Year 4. Flax determined that the machine had a useful life of 6 years from the date of acquisition and will ha...
1 answer
A 5 kg ball traveling to the right at 5 m/s collides with a 4 kg...
A 5 kg ball traveling to the right at 5 m/s collides with a 4 kg ball at rest. After the collision, the 4 kg ball is traveling to the right at 5.556 m/s. What is the velocity of the ball on the left after the collision? A motor spins a disk (Idisk = 24.4 kg*m2) with a torque of 39 N*m, and a 10 N fr...
1 answer
QUESTION 11 Prepare a dose of 12 mg from an available supply of 10 mg in...
QUESTION 11 Prepare a dose of 12 mg from an available supply of 10 mg in 5 mL. TT T Arial 43 (12pt) - TEE 5.0 25 Path:p QUESTION 12 Prepare a dose of 475 mg from an available supply of 0.3 g in 2 mL. TTT Arial .3 (12pt) TEE 25 Click Save and Submit to save and submit. Click Save All Answers to save ...
1 answer
Question 5 In a graph of InKsp vs. 1/T, the y-intercept of the graph is related...
Question 5 In a graph of InKsp vs. 1/T, the y-intercept of the graph is related to a) change in enthalpy b) change in entropy Oc) none of these d) change in free energy Question 6 In a graph of InKsp vs. 1/T, the slope of the graph is related to change in free energy none of these change in entropy...
1 answer
10 pts Which of the following is not a factor in determining whether an Item is...
10 pts Which of the following is not a factor in determining whether an Item is a foture that has attached itself to real property? The cost of the item paid for by the previous owner Whether the item is attached in a way that would be harmful to remove The item was adapted or customized to a piece ...
1 answer
Please No Image I need in excel Part D: Process Costing using First-in-First Out (FIFO) Crone...
Please No Image I need in excel Part D: Process Costing using First-in-First Out (FIFO) Crone Corporation uses the FIFO method in its processing costing system. The following data concern the company's Assembly Department for the month of October. Cost in beginning work in process inventory .......
1 answer
1.4.25 Question Help A club wants to sponsor a panel discussion on an upcoming election. The...
1.4.25 Question Help A club wants to sponsor a panel discussion on an upcoming election. The club wants to have four of its members lead the panel discussion. To be fair, however, the panel should consist of two members of each party. Below is a list of members in each party. Obtain a stratified sam...
1 answer
Na 2 = ža Compute the volume of the solid created by rotating the area between...
na 2 = ža Compute the volume of the solid created by rotating the area between the graph of y= sin(2) cos(x) and the x-axis between c = () and I = į around the x-axis....
1 answer
Find the magnification for an object that is 40 cm in front of a thin concave...
Find the magnification for an object that is 40 cm in front of a thin concave lens formed by cutting two spherical segments (radii 20 cm and 40 cm ) out of glass with an index of refraction of 1.8....
1 answer
Please attempt all questions. 2. Use the polynomial inner product to find the projection of f(*)...
Please attempt all questions. 2. Use the polynomial inner product to find the projection of f(*) onto g(x). (a) f(x) = -12 -1, 9(20) = ? (b) f(x) = 2x2, g(x) = 2+1 (C) f(c) = -1-1, g(x) = r2 +3 3. Use the continuous function on the interval [0,1) inner product to find the projection of f(x) onto g(...