The income elasticity of demand for an addictive substance is always positive
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Suppose the only characteristic of beer that a consumer cares about is alcohol content. Currently, Bud Light and Miller Lite both have the same alcohol content. a. Illustrate the consumer's indifference curves in a graph with ounces of Miller Lite on the horizontal and ounces of Bud Light on the vertical axis. b. Suppose that the producers of Bud Light lower the price of Bud Light. How will your answer to (a) change?
c. Suppose that the producers of Bud Light lower the alcohol content of their beer by 50%. How will your answer to (a) change? d. Since we identify tastes with indifference maps, would you say that the consumer's tastes have changed in (b) or (c)? e. How could we change the units we use to measure Miller Lite in order to get the indifference map in (c) to again look like the one in (a)? What will be an ideal response?
The North American Free Trade Agreement (NAFTA)
a. involves the United States, Canada, and Mexico b. did not increase the volume of trade among the countries of North America c. was negotiated after President Obama took office d. failed to acknowledge environmental protection in its trade propositions
The strategy for the Bertrand model is
A. to take account of the effect of its own behavior on the rival firm's quantity choice. B. to sell a marginally higher quantity of goods than the rival. C. collusion. D. to sell at a marginally lower price than the rival but not below marginal cost.
In an expansion, the cyclical rate of unemployment is often:
A. zero. B. negative. C. equal to the natural rate of unemployment. D. positive.