For most goods and services the income elasticity of demand is
A) negative.
B) positive.
C) invisible.
D) inverse.
B
You might also like to view...
On a two-dimensional graph, ________ allows for the effects of additional variables
A) adding an additional curve B) eliminating a curve C) moving along a curve D) shifting curves
A firm's cost can decrease for each of the following reasons, EXCEPT:
a. an increase in productivity due to experience. b. an improvement in productivity of capital employed. c. an improvement in work environment and quality of management. d. an increase in input prices.
Policymakers have generally come to accept the view that advertising enhances the efficiency of markets
a. True b. False Indicate whether the statement is true or false
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.