23. Suppose the income elasticity of demand of watches is 0.7. If the median income in the United States rises by 10%, then the demand for watches should: increase by 0.7%. decrease by 7%. increase by 7%. increase by 70%. 24. During a recession, median income falls by 15%. If the demand for grapes falls by 12%, grapes are a(n) _____ good with an income elasticity of demand of _____. inferior; -0.8 normal; -0.8 inferior; 0.8 normal; 0.8 25.. The market supply curve is: more elastic in the long run than in the short run. perfectly elastic in the short run but not the long run. less elastic in the long run than in the short run. perfectly inelastic in the long run but not the short run.

    Q23
    Proceeds alterableity=% fluctuate in aggregate ask-fore\%fluctuate in income
    0.7=%fluctuate in ask-coercion coercion waches\10
    %fluctuate in ask-coercion coercion waches=7%

    increase by 7%

    Q24
    ordinary good

    proceeds alterableity of ask-for
    =12\15
    =0.8
    the unconditional proceeds alterableity shows that it is ordinary good

    Q25
    more alterable in the crave traverse than in the limited traverse
    becatruth balance the date nation truth to discover substitutes.