posted by .

An economist for a bicycle company predicts that, other things equal, a rise in consumer incomes will increase the demand for bicycles. This prediction is based on the
assumption that:

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. economics

    in the simple economics of a competitive market price increase under which condition: a)demand is decline. b)demand increases. c)demand ans supply rise concomitantly.
  2. economics

    Suppose we have the following market supply and demand schedules for bicycles: Price Quantity Demanded Quantity Supplied $100 70 30 $200 60 40 $300 50 50 $400 40 60 $500 30 70 $600 20 80 Plot the supply curve and the demand curve for …
  3. Economics

    which of the following factors will not lead to a decrease in demand for a good?
  4. Economics

    Annual demand and supply for the Entronics company is given by: QD = 5,000 + 0.5 I + 0.2 A - 100P, and QS = -5000 + 100P where Q is the quantity per year, P is price, I is income per household, and A is advertising expenditure. a. …
  5. Microeconomics

    4. Assume a drought in the Great Plains reduces the supply of wheat. Noting that wheat is a basic ingredient in the production of bread and that potatoes are a consumer substitute for bread, we would expect the price of wheat to: A) …
  6. College Algebra

    A company builds bicycles. Their fixed cost is 300,000 and it costs $500 to make each bicycle(labor,materials,etc.) A)What is the cost equation and what is the average cost per bicycle?
  7. economics

    Suppose average movie attendance is 250 million tickets when prices are $7 a ticket and 200 million when prices are $9 a ticket. Other things being equal, the data imply that the elasticity of demand for movie tickets is: A. elastic, …
  8. economics math

    Consider the problem of a rational consumer with an experienced utility function given by 10ln(x)+m and a wealth level W=100. Suppose that the market price for good x is p=$2 per unit. You are asked to analyze the impact on the consumer's …
  9. economics

    In which of the following situations would the price of a good be most likely to increase?

    The income elasticity for most staple foods, such as wheat, is known to be between zero and one. As incomes rise over time, what will happen to the demand for wheat?

More Similar Questions