What is the difference between a necessity and a luxury?
What will be an ideal response?
Ans: A necessity is a good people will always buy, even when the price increases, while the quantity of luxuries consumers buy can easily be reduced.
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Explain how globalization has benefitted consumers but has also widened the gap between rich and poor in the United States
What will be an ideal response?
In a perfectly competitive market with identical firms, all surplus will be consumer surplus in long run equilibrium.
Answer the following statement true (T) or false (F)
One reason for the short-run aggregate supply curve (SRAS) is:
A. a fixed CPI market basket. B. perfect knowledge of workers. C. fixed-wage contracts. D. the upward-sloping production function.
The largest spending category for state governments is
A. highway construction. B. education. C. border patrol. D. welfare.