ECO100Y1 Lecture Notes - Lecture 3: Normal Good, Inferior Good, Price Ceiling
Document Summary
In london, during world war ii, the weekly demand and supply curves for a carton of eggs are as follows: 5,000 (a) what is the equilibrium price and quantity of a carton of eggs? (b) to protect consumers, the government imposes a price ceiling of on each carton of eggs. The following are the elasticities for toyota camry: Answer true, false or uncertain to the following statements and explain your. Income elasticity of demand = 1. 5 answer. (a) (b) a 10% increase in the price of a camry will reduce the quantity demanded by. An increase in consumer income will increase the price and quantity of. Since price elasticity of demand is greater than 1, total revenue will go down. Suppose that the incomes of buyers in a market for a normal good decline and there is a reduction in input prices.
