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Go Back   Freemason Hirams Travels Masonic Forums > Social Science > Economics

Economics Economics

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Old 04-04-2008, 05:24 AM
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Chocolate Strawberries. has a spectacular aura about
Two economics questions on Elasticity of Demand:?

1. Students demand for food and drinks in a high school cafeteria at lunchtime is probably price inelastic if:

a) Quantity demanded falls when price increases
b)A fall in price causes a rise in total spending on food and drinks.
c) A rise in price causes the total expenditure on food to fall
d) There was a reduction in student grants
e) There are no other means of having lunch.

2. If average consumer income rises proportionately faster than the demand for a product, then the income elasticity of demand for the product is"

a) 0
b) >0 but <1
c) >1
d) negative
e) equivalent to 1
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