Home » Studiesindicate that the income elasticity of demand for servants in the United Statesexceeds 1.

Studiesindicate that the income elasticity of demand for servants in the United Statesexceeds 1.

1)

a. Studiesindicate that the income elasticity of demand for servants in the United Statesexceeds 1. However, the number of servants has been decreasing during the last75 years, while incomes have risen significantly. How can these facts bereconciled?<?xml:namespace prefix = o ns = “urn:schemas-microsoft-com:office:office” />

b. Universityenrollments have increased substantially during the last recession. Onepossible explanation is that the cost of university education has decreased.However, this in fact is not true. Give two other possible explanations (withat least one of these explanations not relying on explicit costs andbenefits).

2)

Assume that the demand for product A is QA= 500 –5 PA + 3 PB, and the demand for product B is QB=300 – 2 PB + PA.

Currently, market prices and quantities for A and B are PA=5,PB=2, QA=481, and QB=301.

a.      Suppose the price of Brises to 3. What happens to QB and QA? What is the priceelasticity of demand for product B?

b.     Calculate thecross-elasticity of demand between A and B using PB= 2 and 3. Are Aand B complements or substitutes?

3)

In the 1990s, the chicken market responded to two specific“shocks”:

–         Many consumers became awareof the potential health problems associated with eating too much red meat.

–         The technology in the feed,hatchery, and breeding stages of producing chickens improved.

a)    Show and describe theeffect of these changes on the market for chicken. Clearly identify the new andold prices and quantities.

b)    Can you use the (data on)prices and quantities identified in a) to estimate the demand equation forchicken? Can you use them to estimate the supply equation for chicken? Explain

Ans 1a.The demand of servants has increased implying servants are normal or luxury items. The reason fordecrease in supply could be due to factors other than income not being constant over the…

Show more







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10