1. Which of the following is likely to make demand more elastic with respect to price?
A..The good being a necessity.
B. The good having no close substitutes.
C. The good being a small percentage of income or budget.
D. A short time frame in which to buy the good.
E. none of the above
2. Angela consumes only two goods, x and y. Her income doubles and the prices of the two goods remain unchanged. Assuming that she is a utility maximizer and likes both goods,
a. she will consume more of both goods.
b. the ratio of her consumption of x to y remains constant.
c. her utility doubles.
d. if her preferences are convex, she must consume more x.
e. None of the above.