| Author: | Homework Help Classof1 | ISBN: | 1230000117564 |
| Publisher: | Classof1 | Publication: | March 26, 2013 |
| Imprint: | Language: | English |
| Author: | Homework Help Classof1 |
| ISBN: | 1230000117564 |
| Publisher: | Classof1 |
| Publication: | March 26, 2013 |
| Imprint: | |
| Language: | English |
"1. Mike spends all his income on tennis balls and basketball tickets. His demand curve for tennis balls is elastic. Tr«, or false: If the price of tennis balls rises, he consumes more tickets. Explain.
2. At current prices, housing costs $50 per unit and the composite good has a price of $1 per unit. A wealthy benefactor has given Joe, a penniless person, 1 unit of housing and 50 units of the composite good. Now the price of housing falls by half. True or false: Joe is necessarily better off as a result of the price change. Explain
"
"1. Mike spends all his income on tennis balls and basketball tickets. His demand curve for tennis balls is elastic. Tr«, or false: If the price of tennis balls rises, he consumes more tickets. Explain.
2. At current prices, housing costs $50 per unit and the composite good has a price of $1 per unit. A wealthy benefactor has given Joe, a penniless person, 1 unit of housing and 50 units of the composite good. Now the price of housing falls by half. True or false: Joe is necessarily better off as a result of the price change. Explain
"
