tobacco is a normal, income - inelastic good. it follows that a 10 percent decrease in income will ______…

tobacco is a normal, income - inelastic good. it follows that a 10 percent decrease in income will ______ quantity demanded by ______ than 10 percent.\n\nincrease, less\nincrease, more\ndecrease, less\ndecrease, more\n\nquestion 4\n1 pts\nsuppose the demand of a good is price elastic. when p increases by 1%, q would ______ and r would ______.\ndecrease by less than 1%, increase\ndecrease by more than 1%, decrease\ndecrease by less than 1%, increase\ndecrease by less than 1%, decrease

tobacco is a normal, income - inelastic good. it follows that a 10 percent decrease in income will ______ quantity demanded by ______ than 10 percent.\n\nincrease, less\nincrease, more\ndecrease, less\ndecrease, more\n\nquestion 4\n1 pts\nsuppose the demand of a good is price elastic. when p increases by 1%, q would ______ and r would ______.\ndecrease by less than 1%, increase\ndecrease by more than 1%, decrease\ndecrease by less than 1%, increase\ndecrease by less than 1%, decrease

Answer

Brief Explanations:

  1. For the first question about tobacco (a normal, income - inelastic good): Income - inelastic means that the percentage change in quantity demanded is less than the percentage change in income. When income decreases, for a normal good, quantity demanded decreases. So a 10 percent decrease in income will decrease quantity demanded by less than 10 percent.
  2. For the second question about a price - elastic good: In price - elastic demand, the percentage change in quantity demanded is greater than the percentage change in price. When price (P) increases by 1%, quantity demanded (Q) will decrease by more than 1%. Total revenue (R = P×Q) will decrease because the decrease in quantity demanded is large enough to outweigh the increase in price.

Answer:

First question: decrease, less Second question: decrease by more than 1%, decrease