1. Inferior,
2. Normal,
3. Complements, or
4. Substitutes
(Please Include The Negative signs in your answers where
appropriate)
A. The price of gasoline increases from 12 per
barrel to 28 per barrel and as a result, the demand per month for
new cars changes from 600 to 200.
Part 1: The elasticity is
Part 2: These goods are (answer using numbers,
1-4)
B. As a result of a change in income from 1,275
to 1,875 per month, the consumption...