When consumers' incomes decline during a recession, they increase their consumption of instant coffee and reduce their consumption of other beverages. Therefore, instant coffee:
A. is a necessity because consumers buy more during a recession.
B. has a negative income elasticity of demand.
C. has an income elasticity of demand greater than zero but less than one.
D. is normal.
B. has a negative income elasticity of demand.
You might also like to view...
What is the "good news" and the "bad news" about a higher value of the U.S. dollar?
What will be an ideal response?
The accompanying figure shows Becky's daily production possibilities curve for dresses and skirts.
Of the labeled points, only ________ are efficient.
A. W, X, Y, Z, V, and T B. T and U C. X, Y, and Z D. W, X, Y, Z, and V
Refer to the figure below.
If a price ceiling were imposed at point G, the consumer surplus would be represented by the area ________.
A. BAEH B. BJEH C. JAE D. GAEF
The notion of creative destruction suggests that
A. people are not well-trained enough to keep the jobs they have. B. people need to lose their jobs involuntarily to seize better opportunities. C. it is always easier to scramble an egg than to unscramble one. D. people are generally lazy and that losing a job shakes them out of that.