Question

Natural Light Beer is a favorite of college students, who lovingly refer to it as "Natty...

Natural Light Beer is a favorite of college students, who lovingly refer to it as "Natty Light", however shockingly few college graduates drink Natty Light. How would you expect the market demand for Natural Light Beer to change in response to a decrease in average consumer incomes?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer:
The market demand for Natural Light Beer will increase when there is a decrease in average consumer incomes

Natural Light Beer is an inferior good. It is a favourite of college students because it is low cost. But when students graduate and start earning income, they stop the consumption of Natty Light and switch over to better brands. However, when the average consumer income decreases, the market demand for Natural Light beer will increase. This is the proerty of inferior goods. Inferior goods like Natty Light are inversely proportionate to consumer income.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1- Students who graduate college with a degree in economics earn higher starting salaries than the...
1- Students who graduate college with a degree in economics earn higher starting salaries than the average college graduate- or so they say. A recent survey of 430 graduates, representing 7% of the total graduates at a major university, found that their average starting salary was 57,650$ with a standard deviation of 9,660$. A- what is n? B- What is a 90% confidence interval for average starting salaries for econ majors? 2- In question 1, how would the results change...
Question 21 to 30 refer to the following scenario: Beer consumption of spring breakers during spring...
Question 21 to 30 refer to the following scenario: Beer consumption of spring breakers during spring break is normally distributed around a mean of μ=10μ=10 σ=3σ=3 The interquartile range of beer consumption is equal to _____ pitchers? Question 25 options: 4.05 5.12 3.95 6.98 Question 26 (1 point) Saved At how many pitchers of excessive beer consumption would a spring breaker be considered an outlier? Question 26 options: 14.7 16.9 18.1 This cannot be answered, it depends on the school....
A professor states that in the United States the proportion of college students who own iPhones...
A professor states that in the United States the proportion of college students who own iPhones is .66. She then splits the class into two groups: Group 1 with students whose last name begins with A-K and Group 2 with students whose last name begins with L-Z. She then asks each group to count how many in that group own iPhones and to calculate the group proportion of iPhone ownership. For Group 1 the proportion is p1 and for Group...
In a national survey college students were​ asked, "How often do you wear a seat belt...
In a national survey college students were​ asked, "How often do you wear a seat belt when riding in a car driven by someone​ else?" The response frequencies appear in the table to the right.​ (a) Construct a probability model for​ seat-belt use by a passenger.​ (b) Would you consider it unusual to find a college student who never wears a seat belt when riding in a car driven by someone​ else? Response   Frequency Never   125 Rarely   305 Sometimes   530...
You want to estimate the proportion of full-time college students who earn a bachelor’s degree in...
You want to estimate the proportion of full-time college students who earn a bachelor’s degree in four years or less. How large a sample would be needed to ensure a 95% confidence level that the estimate is within 3 percentage points of the true population proportion?
In a national survey college students were​ asked, "How often do you wear a seat belt...
In a national survey college students were​ asked, "How often do you wear a seat belt when riding in a car driven by someone​ else?" The response frequencies appear in the table to the right.​ (a) Construct a probability model for​ seat-belt use by a passenger.​ (b) Would you consider it unusual to find a college student who never wears a seat belt when riding in a car driven by someone​ else? Response Frequency Frequency Never 113 113 Rarely 324...
4. For each market whose product is highlighted in italics, identify whether each of the following...
4. For each market whose product is highlighted in italics, identify whether each of the following trends represents an increase or decrease in demand or an increase or decrease in quantity demanded. How would you describe each change in graphical terms? a. The drop in the monthly subscription rate changes the number of subscribers to a cable TV provider. b. The quantity of canned milk purchased adjusts due to a decrease in consumer incomes. c. The price of a particular...
Promoters of a major college basketball tournament estimate that the demand for tickets on the part...
Promoters of a major college basketball tournament estimate that the demand for tickets on the part of adults is given by Qad = 5,000 – 10P, and that the demand for tickets on the part of students is given by Qst = 10,000 – 100P. The promoters wish to segment the market and charge adults and students different prices. They estimate that the marginal and average total cost of seating an additional spectator is constant at $0. a. For each...
Promoters of a major college basketball tournament estimate that the demand for tickets on the part...
Promoters of a major college basketball tournament estimate that the demand for tickets on the part of adults is given by Qad = 5,000 –10P, and that the demand for tickets on the part of students is given by Qst = 10,000 –100P. The promoters wish to segment the market and charge adults and students different prices. They estimate that the marginal and average total cost of seating an additional spectator is constant at $0. a.For each segment (adults and...
7.1 Regional College increased their admission standards so that they only admit students who have scored...
7.1 Regional College increased their admission standards so that they only admit students who have scored in the 80th percentile or higher (top 20%) of all scores on the SAT. What SAT cutoff will the school use this year? (Recall that for the SAT μ = 500, σ = 100, and the scores are normally distributed) 7.2 Even with the increase in standards, the Registrar at Regional College notices that people who don’t meet the minimum continue to apply for...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT