Consider the market for flowers. D should be Positive or Negative?______________
ID: 1240967 • Letter: C
Question
Consider the market for flowers.D
should be Positive or Negative?__________________________________________
ES
should be Positive or Negative?__________________________________________
INTERPRET |ED
| = 2.5
__________________________________________________________________
Is ED Elastic or Inelastic? __________________________________________________
Which is greater: |%?QD
| or |%?P|?________________________________________
From ED
, can you determine whether the good is normal or inferior?______________
From ED
, can you determine whether the good is a luxury or a necessity? __________
(9)
______________________________________________________________________
If the answers for (6) or (7) were yes, then identify such specifics of this good:
INTERPRET |ES
| = 3.0
_________________________________________________________________________
(10) Is ED Elastic or Inelastic? __________________________________________________
Which is greater: |%?QS
| or |%?P|?________________________________________
And their Y
Thus, flowers are Normal or Inferior? ______________________________________________
On average, people buy flowers when they have more or less income? ___________________
D
should be Positive or Negative? ________________________________________
Assume YD = 0.8 for flowers. Fully interpret the coefficient:
Is the Y
Are flowers a Normal or Inferior good?______________________________________
_____________________________________________________________________________
D
response Elastic or Inelastic?_______________________________________
Are flowers a necessity or luxury (only answer if they are a normal good)?__________
Should the X
Are flowers and vases complements or substitutes?___________________________________
Consider related markets.
D
for flowers and vases be Positive or Negative?____________________________
Assume XD = -0.4 (in the market for flowers when the price of vases changes) . Fully interpret the coefficient:
Should the X
Are fresh flowers and artificial flowers complements or substitutes?_______________________
_____________________________________________________________________________
D
for fresh and artificial flowers be Positive or Negative?_______________________
Assume XD = 0.8 (in the market for fresh flowers when the price of artificial flowers changes). Fully interpret
___________
Explanation / Answer
Positive Positive