What can we conclude about Naveens income elasticity of demand for jellybeans?
A. The income elasticity is negative and inelastic. B. The income elasticity is positive and inelastic. C. The income elasticity is negative and elastic. D. The income elasticity is positive and elastic. E. We need more information to conclude anything. 27. Ms. Matsumoto makes sushi from Oregon salmon and sells it at the Ithaca Farmers Market. Recently, a study was reported in the Ithaca Journal that found that consumption of Oregon salmon significantly reduced the risk of heart disease. At the same time, the over-logging of old-growth forests in Oregon has severely harmed the spawning grounds for Oregon salmon and many fewer salmon are being caught by northwest fishermen and women. What can we determine about the market equilibrium for Ms. Matsumoto’s sushi? A. The equilibrium price rises. B. The equilibrium price falls. C. The equilibrium price does not change. D. The equilibrium quantity rises. E. We cannot determine if the equilibrium price rises or falls from information provided.
