If a price decrease results in your expenditure on a good decreasing, your demand must be
A) inelastic.
B) unit.
C) elastic.
D) linear.
A
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Explain the time dimension as it relates to elasticity. Be sure to include in your answer the difference in elasticity between the short run and the long run
What will be an ideal response?
A good is considered normal when its income elasticity of demand is ___ and inferior when the its income elasticity of demand is ___
a. Greater than zero, less than zero. b. Less than zero, greater than zero. c. Greater than one, less than one. d. Less than one, greater than one.
As of December 2008, housing accounted for about ________ of the typical consumer's spending
a. 32 percent. b. 30 percent. c. 43 percent. d. 65 percent. e. 70 percent.
An increase in a country's budget surplus shifts its
a. demand for loanable funds right and decreases investment spending. b. supply of loanable funds right and increases investment spending. c. supply of loanable funds left and decreases investment spending. d. None of the above is correct.