Suppose the "Poor" and "Rich" Have Identical Demand Functions for Good

question 53

Multiple Choice

Suppose the "poor" and "rich" have identical demand functions for good X but only differ in income (I) $q _ { X } = 1000 + I - 50 P _ { X } - 20 P _ { Y }$ .At a given price of X,the price elasticity of their individual demand curves is such that?

• A)the rich person's demand is more elastic than the poor person's.
• B)the poor person's demand is more elastic than the rich person's.
• C)the poor person's demand is as elastic as the rich person's.

---

Definitions:

Management Structure

The organizational framework that outlines the hierarchy of authority and responsibility within a company.

Organic

Often used to describe farming practices that avoid the use of synthetic fertilizers and pesticides, or organizations and systems that are flexible and adapt to changes naturally.

Mechanistic

Characterizes an organizational structure that is highly bureaucratic, with strict rules, procedures, and a clear hierarchy, focusing on efficiency and predictability.

Flexible

Capable of adapting to changes and new conditions in a thoughtful and efficient manner.