University of Louisiana, Lafayette - ECON 528 Module 3 Homework Assignment

University of Louisiana, Lafayette - ECON 528 Module 3 Homework Assignment Started on Monday, 10 September 2018, 5:20 PM State Finished Completed on Monday, 10 September 2018, 5:31 PM Time taken 10 mins 51 secs Marks 20.00/20. 00 Grade 10.00 out of 10.00 (100%) Question 1 Correct Mark 1.00 out of 1.00 If an increase in income leads to a decrease in the demand for popcorn, then popcorn is Select one: a. a normal good. b. an inferior good. c. a necessity. d. a neutral good. Your answer is correct. The correct answer is: an inferior good. ECON528-850-ECON528-010- Question 2 Correct Mark 1.00 out of 1.00 Tomas increased his consumption of potato chips when the price of pistachios increased. For Tomas, potato chips and pistachios are Select one: a. both inferior goods. b. both luxury goods. c. complements in consumption. d. substitutes in consumption. Your answer is correct. The correct answer is: substitutes in consumption. Question 3 Correct Mark 1.00 out of 1.00 The price elasticity of demand for Stork ice cream is -4. Suppose you're told that following a price increase, quantity demanded fell by 10 percent. What was the percentage change in price that brought about this change in quantity demanded? Select one: a. 0.4 percent b. 2.5 percent c. 25 percent d. 40 percent Your answer is correct. The correct answer is: 2.5 percent Question 4 Correct Mark 1.00 out of 1.00 Consider the following pairs of items: a. shampoo and conditioner b. iPhones and earbuds c. a laptop computer and a desktop computer d. beef and pork e. air-travel and weed killer Which of the pairs listed will have a negative cross-price elasticity? Select one: a. a and b only b. e only c. a, b, and c only d. c and d only Your answer is correct. The correct answer is: a and b only Question 5 Correct Mark 1.00 out of 1.00 If a 5 percent increase in income leads to a 10 percent increase in quantity demanded for airline travel, then airline travel is Select one: a. a substitute for another good. b. a necessity. c. a luxury. d. an inferior good.