Question

The price of basketball shoes increases by 4%, causing the quantity demanded of headbands to decrease by 6%. The cross-price elasticity of demand is type your answer and the goods are choose your answer.. 2 points Victor buys 40 tickets to NBA games a year when his yearly income is $40,000. After his income falls to $35,000 a year, he only purchases 35 tickets to NB games a year. Calculated using the midpoint formula, Victor's Income elasticity of demand for tickets to NBA games is which means that NBA tickets are an) choose your answer.. good. point Which of the following statements is TRUE? L. As the number of substitutes for a good increases, the clasticity of demand increases II. As the length of time increases, the elasticity of demand decreases. IIL A luxury good has a higher clasticity of demand than a good that is a necessity, IV. As the purchase size of a good increases relative to one's income, the elasticity of demand decreases, O I and IV only O IV only O I and III only

Answer 1

Penie r -4% Gross price elasticity = 250 -6 = -1.5 Goods are complement. ble of we crosspriu dasticity Victor's aty = 40 Income - 40000 Iron & to 3500o quy=-35 Thuone Elasticity = no da 37.5 NBA tickes are a normed good uce ist statenet is bue False As time ter edder. Ty & statement is true lasli for luxury lask1 for necessity The statement is false. Ans is € & Il Statement is sue.