Demand for a luxury item, such as a yacht, is likely to be
A) income elastic and price inelastic. B) income inelastic and price elastic.
C) both income elastic and price elastic. D) both income inelastic and price inelastic.
C
You might also like to view...
Increasing opportunity cost is represented by a ________ production possibilities frontier
A) linear B) vertical C) bowed out D) bowed in
Suppose the major soft drink companies develop vending machines for canned and bottled drinks that can determine your maximum willingness-to-pay for a drink, and the machine charges you that price when you purchase a drink
If this were possible, the consumer surplus in the vended soft drink market would be: A) positive because consumer surplus equals consumer expenditures in this case. B) positive because the market demand curve is perfectly inelastic in this case. C) negative because people are not actually willing to pay their maximum value for the product. D) zero because all surplus value is captured by the seller.
It is clear from the text that most economists assume the primary goal of all firms is to
a. maximize sales b. minimize cost c. maximize efficiency d. maximize profit e. minimize loss
Borrowing from other nations is necessary to finance
A. a foreign trade surplus. B. more exports than imports. C. a surplus in the current account. D. more imports than exports.