Refer to the budget line shown in the diagram. If the consumer's money income is $20, which of the following combinations of goods is unattainable?
A. 4 units of C and 6 units of D.
B. 5 units of C and no units of D.
C. 1 unit of C and 8 units of D.
D. 2 units of C and 6 units of D.
A. 4 units of C and 6 units of D.
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Danita rescues dogs from her local animal shelter. When Danita's income rises by 7 percent, her quantity demanded of dog biscuits increases by 12 percent. For Danita, the income elasticity of demand for dog biscuits is
a. negative, and dog biscuits are a normal good. b. negative, and dog biscuits are an inferior good. c. positive, and dog biscuits are an inferior good. d. positive, and dog biscuits are a normal good.
Investment is:
a) An injection that increases aggregate demand b) A withdrawal that increases aggregate demand c) An injection that decreases aggregate demand d) A withdrawal that decreases aggregate demand
Good current economic conditions incent people to save ________, and a good outlook on future economic conditions incent people to save ________.
A. less; more B. more; more C. less; less D. more; less
Refer to Scenario 19.4 below to answer the question(s) that follow. SCENARIO 19.4: Suppose demand for widgets is given by the equation P = 10 - 0.25Q. Originally, the price of the good is $5 per unit. When a tax of $1 per unit is imposed, the price of the good rises to $6 per unit.Refer to Scenario 19.4. What is the total burden of the tax?
A. $2 B. $18 C. $32 D. $50