economics

posted by .

When the price of summer tank tops falls and you buy more because they are relatively less expensive, this is called:

a)elasticity effect
b) deadweight loss effect
c) income effect
d) substitution effect

  • economics -

    elasticity effect.

  • economics -

    b)deadweight loss effect

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Microeconomics

    1. The utility function is given by: U=x+y and the budget line is x+2y=100. Then the price of good x goes up to 4. Find the Hicksian substitution effect, income effect, and total change in demand for good x from the change --- Ok i …
  2. economics

    I know this might be basic.....but I am still not sure about subject of elasticity?
  3. economics

    describe the difference between the income effect and the substitution effect
  4. economics

    When the price of summer tank tops falls and you buy more because they are relatively less expensive, this is called:
  5. microeconomics: work-leisure model

    Consider the work-leisure model. Assume leisure is a normal good and suppose the wage rate(W) increases, then in this case we will have the following. Substitution effect: W increases => hours of leisure decrease Income effect has …
  6. Economic

    A Giffin good is not correctly described by which of the following?
  7. Economics

    A music store holds a half-price sale on all CDs. During the sale, people buy more CDs than usual. What does this event show?
  8. Chemistry

    How would you find that water is more acidic than ammonia with out using pka values?
  9. Managerail Economics

    After Iraq invaded Kuwait gasoline prices rose dramatically – up to 50%. These were many effects of the increased price of gasoline. Explain the following effects in terms of the income effect, or the substitution effect, or both …
  10. macro

    Assume that the utility function of a consumer is given by U = ln c1 + ln c2 The interest rate is given by 5% and the endowments are given by (y1, y2) = (100, 120). (a) Draw the budget constraint. (b) Calculate the consumption and …

More Similar Questions