When the Demand and Supply of Grapes Both Increase at the Same

question 167

Multiple Choice

When the demand and supply of grapes both increase at the same time,we can safely predict that the:

• A) price of grapes will fall.
• B) price of grapes will rise.
• C) quantity of grapes bought and sold will fall.
• D) quantity of grapes bought and sold will rise.

Identify the determinants of the elasticity of demand.

Calculating and understanding income elasticity of demand.

Distinguish between inelastic, unit elastic, and elastic demand based on elasticity values.

Understanding the relationship between the proportion of income spent on a good and its elasticity of demand.