The demand for a necessity whose cost is a small portion of one's total income is
A. perfectly inelastic.
B. relatively inelastic.
C. relatively elastic.
D. unit-elastic.
Answer: B
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What will be an ideal response?
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Explain how the GDP and the interest rate are related to the transactions demand and asset demand for money.
What will be an ideal response?
Refer to the information provided in Figure 6.4 below to answer the question(s) that follow.
Figure 6.4Refer to Figure 6.4. Bill's budget constraint is AC. If the black bean price decreases, Bill's budget constraint will
A. remain at AC. B. swivel toward AD. C. swivel toward AO. D. swivel toward AB.