A measure of the responsiveness of demand to changes in income, all other things being constant, is
A) income elasticity of demand.
B) price income elasticity of demand.
C) price elasticity of demand.
D) cross price elasticity of demand.
Answer: A
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Assume the price of product A increases from $1 to $1.50, while the price of competing product B increases from $1.50 to $2.00
Based on the information, what we can say about the absolute and relative price differences between the two products and the relative attractiveness of the two products to consumers.
Which of the following describes a natural monopoly?
a. When economies of scale are large relative to size of market b. Created by the government through patents, copyrights c. When one firm has control of a physical resource d. When one firm pursues predatory pricing
Unemployment insurance payments act as automatic stabilizers by
a. allowing for more consumer spending during prosperity b. evening out workers' income over the business cycle c. creating higher budgets during a recession d. allowing for less consumer spending during a recession e. evening out differences between the Phillips and Laffer curves
Explain the three characteristics of utility
Please provide the best answer for the statement.