Suppose that when income decreases from $800 to $400 a month…

Suppose that when income decreases from $800 to $400 a month, the quantity demanded for take outs dinners decreases from good 15 units to 10 meals a month. Which of the following statements can we make given this information? (Use the midpoint method to perform any computations you deemed necessary.)i. The good is a normal good.ii. The good is income inelastic.iii. The good is a necessity good.

Which of the following statements about income elasticity of…

Which of the following statements about income elasticity of demand is/are TRUE? i. Normal goods always have a positive income elasticity of demand.ii. When the income elasticity of demand for a good is greater than 1, an increase in the level of income leads to an increase in the share of income spent on the good.iii. Inferior goods have an income elasticity of demand between 0 and 1.

Consider the following statements about the rent control pol…

Consider the following statements about the rent control policy and assess their veracity. It is a price ceiling on rents intended to make housing more affordable for the poor. Reduced rent creates a relatively small shortage of housing in the short-run, but a larger shortage in the long-run, because supply and demand are more elastic in the long-run. It is a price floor designed to stimulate construction of large apartment complexes.