Question

A.O B. 24 C. 40 D. 60 The demand curve for the new computer game, Rock and Roll Trivia, is given as follows: Q = 250 - 5P-0.1P. - 0.5P+0.2A-21 where P is the price of the game, P. is the price of a computer, P is the price of a diskette. A is the level of advertising, and Q is the level of income. Suppose P = 10. P. = 100. P. = 2. A = 5, and I = 50. What is the income elasticity of demand? A. 5/9 B. -5/9 C.-9/5 D. -10/9 19. If the demand for oranges is written as Q = 20-0.2p, then the inverse demand function is A Q = 0.2p - 100 B. Q = 100 - 5p. C. P 100 - 50 D. p=20 - 0.20 20. Suppose the demand for widgets is given by Qd = 100 - 5p - P+21, where I is average consumer income p is the price of lemons, and is the price of doodads. According to this equation, doodds are a() – for widgets A. substitute B. complement C. input D. None of the above. 21. If a person supplies more hours of labor in response to a wage increase, then A. the substitution effect is greater than the income effect. B. the income effect is greater than the substitution effect. C. the income effect equals the substitution effect. D. the person is not maximizing utility 22. If the utility function (U) between food (F) and clothing (C) can be represented as U= XC. the marginal rate of substitution of clothing for food will if more food and less clothinare CO A. increase in absolute terms B. decrease in absolute terms C. remain the same D. Not enough information 23 Janet Consumer and together in fixed proportion. She always come units of forever 2. One utility function that describes her preferences is A. U(1,2)=21, + B. U(2 ) +212 C. U (=1, ) - min (21,} D. U (41, 42) = min., 273}

Answer 1

Due to presence of HOMEWORKLIB POLICY, I am answering first question.

18.

Ans: D.

Explanation:

Using given values, we have demand:

Q = 250 - 5(10) - 0.1(100) - 0.5(2) + 0.2(5) - 2I = 190 - 2I

Income elasticity:

Using value of income = 50, we have:

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