Two Economists from Ohio University Estimated That the Demand Curve

question 113

Multiple Choice

Two economists from Ohio University estimated that the demand curve for kerosene in Indonesia was such that a 10 percent increase in the price reduced the quantity demanded by 2.2 percent and that a 10 percent increase in the price of electricity increased the demand for kerosene by 1.6 percent.This indicates that (i) the demand for kerosene is price inelastic and (ii) kerosene and electricity are substitutes.Which of these two statements is correct?

• A)i and ii
• B)i not ii
• C)ii not i
• D)neither i nor ii

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Definitions:

Sterility

The inability to reproduce or conceive a child, often due to factors affecting reproductive health.

Intrinsic Motive

Motivation driven by internal rewards, such as personal satisfaction or the joy of mastering a new skill, rather than external pressures or rewards.

Socialization

The process by which individuals learn and adopt the norms, values, behavior, and social skills appropriate to their society.

The Work Ethic

A set of values centered on the importance of working hard and demonstrating discipline, diligence, and responsibility in one's professional life.