b. competitor orientation ustomer orientation. d. profit orientation. 20. A good
ID: 344043 • Letter: B
Question
b. competitor orientation ustomer orientation. d. profit orientation. 20. A good is considered elastic if: a. a small change in price generates a small change in demand. b. a large change in price generates a large change in demand small change in price generates a large change in demand. a large change in price generates a small change in demand. 21. As a college student with a pretty tight budget, Bert usually made coffee at home and brought it to class in a travel mug. Now, after graduating, Bert buys a Starbucks coffee 3-4 days a week. This is an example of: a. cross-price elasticity b. the income effect. c. the substitution effect. d? inelastic goods. 22. When the bird flu devastated farmers' chicken flocks, the price of eggs skyrocketed. Now, poultry farms have fully restocked and rebuilt egg supplies, but demand is down and, as a result, prices of eggs. One reason, experts say, is that when the prices of eggs were high, bakeries and restaurants reformulated recipes to use soy or whey protein instead of eggs. The resulting high supply and low prices of eggs is due to: a. cross-price elasticity. b. the income effect. c. the substitution effect d. inelastic goods.Explanation / Answer
20. (c). small change in price generates a large change in demand
21. (b). the income effect
The income effect is the alteration in command of a good or facility convey on by a transform in a customer’s flexible profits. The income effect can be practical in two developments:
22. (c). substitution effect
A consequence reason by a increase in cost that encourage a customer (whose profits has stayed identical) to purchase extra of a moderately lower-priced high-quality and a lesser amount of a higher-priced.
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