Question

12-Does the phrase "unlimited wants and limited resources" apply to both a low-income household and a middle-income household? Can the same phrase be applied to a very high-income household? Briefly discuss. 13-At a price of $25,000, producers of midsized automobiles are willing to manufacture and sell 75,000 cars per month. At a price of $35,000, they are willing to produce and sell 125,000 a month. Using the same type of calculation method used to compute the price elasticity of demand, what is the price elasticity of supply? Is supply elastic, unit-elastic, or inelastic?

Answer 1

Given that implies does the phase unlimited wants and limited resources apply to both a low-income household house hold. Implies yes the pharse applies to both the low and middle level income households. Implies this is because the pharse unlimited wants and unlimited resources apply to all income groups. Implies A person with less income however could not meet his needs or wants with the less income he can but the phase applies. Implies to the middle income group also because the needs and wants are unlimited but the resources are limited. Implies the same phase could be applied to the very high income. \r\n implies the same phase be applied to a very high income used implies income group as well because basing on the resources and the standard or life also changes. Implies hence unlimited leads to unlimited wants therefore the phase applies.