4.) If Sean's income increases from $10,000 to $50,000, then he buys 100 MARTA tokens rather...

4.) If Sean's income increases from $10,000 to $50,000, then he buys 100 MARTA tokens rather than his previous 200 MARTA tokens per year.

A. What's Sean's arc income elasticity of demand for MARTA tokens? __________.

B. Are MARTA tokens inferior or normal good for Sean? _____________________.

5) As the price of a student parking space increases from $2.50 to $3.50, the quantity supplied (number) of student parking spaces increases from 1050 to 1150.

A. What is the arc elasticity of supply of student parking spaces over this portion of the supply curve of student daily parking spaces? _________________.

B. Is the supply curve for daily student parking spaces elastic, unit elastic, or inelastic over the range of this price change? _________________________ .

Expert Solution

Rahul Sunny answered 2 years ago

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4.) If Sean's income increases from $10,000 to $50,000, then he buys 100 MARTA tokens rather...

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