Econ / IS 13 Homework 5 (100 points) Multiple Choice (1 point each) Identify the choice that best completes the statement or answers the question b 1. What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts we

Econ13__Midterm3.docx-Econ 13 Midterm 3 Time allowed

Practice Test II I. If the income of a consumer increases by 20% and the income elasticity of demand for gasoline is 1.5, what is the change in demand? A. increases by 30% B. decreases by 30% C. increases by 15% D. decreases by 15% II. A farmer uses

Question 10 1 / 1 pts Question 11 1 / 1 pts Question 9 1 / 1 pts In the Solow diagram, an increase in the investment rate will cause a decrease in consumption for all levels of capital. True False FEEDBACK: Page 111-112. Consumption is the difference

1 Answer Key 4 I. As the price of good X decreases from $8 to $6, quantity demanded increases from 10 to 11. Based upon this information we can conclude that the demand for X is A. inelastic. B. elastic. C. insufficient information for judgment. D. u