If good x and good y are perfect substitutes (1 unit of x can be substituted by 1 unit of y) and good x is more expensive, the consumer's Engel curve for good y is

The long-run elasticity of oil demand has been estimated as -0.5. Suppose that the price of oil rises by 10%. What is likely to happen with the quantity of oil demanded in the short-run?

Alisha lives in Nepal and consumes only rice and lentils. Her demand for rice is (m-p_l)/(2p_r), where p_l and p_r are the prices of lentils and rice per pack, respectively, and m is income. Which of the following statements is true?

Suppose that at current prices, the demand for a good is downward-sloping and price-elastic:

Elly has homothetic preferences. When her income was $1200, she bought 4 pairs of shoes and  8 dresses. Then her income changed and she bought 5 pairs of shoes. What is the level of her new income?

Consumer's income per year increases from EUR 20,000 to EUR 25,000. Her demand for a product per year increases from 30 to 60 units. Which of the following is correct?

Tony consumes two goods. Suppose that his income decreases from $2000 to $1000 and at the same time, the price of good 1 decreases from $10 to $5  while the price of good 2 stays constant. Then, Tony’s demand for a good  2 (I recommend drawing how the budget constraint changes)

Suppose that the consumer's demand function for x is x=0.04m-0.2p, where p is the price of good x and m is income. The consumer has $100 and demands 3 units of x. What is the current price elasticity of his demand? Don't forget to write the correct sign! If necessary, please insert decimal numbers (round to two decimal places) instead of fractions!

The figure shows the inverse demand function for the good x. The vertical axis measures price, while the horizontal axis measures the quantity of the good x. Calculate the price elasticity of the demand at the point A.

Please insert numerical value only and round the number to two decimal places if necessary.

Bill and Jake are colleagues working in the same company. Both have been promoted recently. As their wages increased, Bill is observed to spend more money on holidays in the Czech Republic, while Jake spends less on holidays in the Czech Republic. Bill and Jake have identical preferences.