Got Homework?
Connect with other students for help. It's a free community.
Here's the question you clicked on:
 0 viewing
suppose that demand's elasticity for cars in USA=2.5 and in UK=3
If in the next year the incomes of USA grow with 2% and in UK with 1% wht will be the effect in Qd in both countries?
 2 years ago
 2 years ago
suppose that demand's elasticity for cars in USA=2.5 and in UK=3 If in the next year the incomes of USA grow with 2% and in UK with 1% wht will be the effect in Qd in both countries?
 2 years ago
 2 years ago

This Question is Closed

shegBest ResponseYou've already chosen the best response.1
See as the income level of both the countries is increasing then people will have more money to spend that is their desire will get converted into demand ( with extra amount to spend). Thus, such people who do not possess car will purchase car and those who already possess car will try to buy cars which will be better than the car they possess.
 2 years ago

angela210793Best ResponseYou've already chosen the best response.2
my teacher did smth like dw:1322932310482:dw i didn't get...do these show the increase of Qd of USA and UK?
 2 years ago

shegBest ResponseYou've already chosen the best response.1
and income elasticity of demand
 2 years ago

shegBest ResponseYou've already chosen the best response.1
see this equation is for income elasticity of demand..........i was telling it u in words......... If the demand decreases for cars it means that it is inferior good...........and if it demand increases it means that it is a superior good
 2 years ago

shegBest ResponseYou've already chosen the best response.1
\[Income Elasticity of Demand = \frac{percent chage i n quantity demanded}{percent change i n income level}\]
 2 years ago

shegBest ResponseYou've already chosen the best response.1
from this u can find out the quantity demanded
 2 years ago

shegBest ResponseYou've already chosen the best response.1
i was actually trying to explain the relation between income and demand
 2 years ago

angela210793Best ResponseYou've already chosen the best response.2
Oh..............I think I got it.....Thanks ^_^
 2 years ago

shegBest ResponseYou've already chosen the best response.1
so they are directly proportional to each other as the income increases the demand of inferior goods goes down and as income increases the demand of superior goods increases
 2 years ago

angela210793Best ResponseYou've already chosen the best response.2
1st semester ,1st year X)
 2 years ago

angela210793Best ResponseYou've already chosen the best response.2
yes...i like it a lot :)
 2 years ago

shegBest ResponseYou've already chosen the best response.1
yeah very interesting subject i like macroeconomics not microeconomics
 2 years ago

angela210793Best ResponseYou've already chosen the best response.2
just finished micro will start macro on wednesday :) wht r u studying?
 2 years ago

angela210793Best ResponseYou've already chosen the best response.2
oh ok...wht have u studied then?
 2 years ago

shegBest ResponseYou've already chosen the best response.1
Same thing which u r studying right now
 2 years ago

angela210793Best ResponseYou've already chosen the best response.2
business administration?
 2 years ago

shegBest ResponseYou've already chosen the best response.1
what specialization u want to opt
 2 years ago

angela210793Best ResponseYou've already chosen the best response.2
Idk....I think i got some time to think abt it...I've heard accounting is good...idk though
 2 years ago

shegBest ResponseYou've already chosen the best response.1
if u want to opt for finance then it is good because for finance u need a strong quant base
 2 years ago

shegBest ResponseYou've already chosen the best response.1
from my reply it must be clear^^^^^^^^^^^^^^^^^
 2 years ago

angela210793Best ResponseYou've already chosen the best response.2
aha i got it ^^......hmmmmmm.....and,,,wht do u exactly do in finance?
 2 years ago

angela210793Best ResponseYou've already chosen the best response.2
Researcher??? O.o...marketing??? O.o
 2 years ago

angela210793Best ResponseYou've already chosen the best response.2
I'm sorry for my ignorance :/ but I've heard research only in marketing till now :/ sorry....wht do u search for??
 2 years ago

angela210793Best ResponseYou've already chosen the best response.2
OMG!!! I feel like I'm the most ignorant person in the whole world :(:(:( So we can talk at least after I've finished 1st year :P:P is it this? http://www.citibank.com/corpbank/wwss/agency/pf.htm ?? Future plans.....My grades average of 3 years must be +9/10 so tht I can apply for masters scholarships somewhere out of Albania(whr i am from) ^^
 2 years ago

angela210793Best ResponseYou've already chosen the best response.2
Wow....lucky you :):) I wish I can have the same luck ^^ How old r u?
 2 years ago

shegBest ResponseYou've already chosen the best response.1
actually i dont want to disclose my identity
 2 years ago

shegBest ResponseYou've already chosen the best response.1
so nvr use my actual name on these kind of websites......sorry for that
 2 years ago

angela210793Best ResponseYou've already chosen the best response.2
Ok.....I'm sorry....
 2 years ago
See more questions >>>
Your question is ready. Sign up for free to start getting answers.
spraguer
(Moderator)
5
→ View Detailed Profile
is replying to Can someone tell me what button the professor is hitting...
23
 Teamwork 19 Teammate
 Problem Solving 19 Hero
 Engagement 19 Mad Hatter
 You have blocked this person.
 ✔ You're a fan Checking fan status...
Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.