The income elasticity of demand measures
a. the relative certainty of future income
b. how elastic supply is compared to demand
c. the percent change in quantity demanded relative to the percent change in income
d. the percent change in income relative to the percent change in quantity demanded
e. how much income will stretch to make expected payments
C
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In the above figure, suppose the monopolist is producing at Q3. The firm should
A) increase output and decrease price. B) decrease output and increase price. C) not change output or price. D) shut down.
Increasing marginal returns are generally the result of _____.
a. ?labor unions b. ?the specialization and division of labor c. ?change in technology d. ?diseconomies of scale e. ?increasing costs
Of the types of business organizations in the United States, sole proprietorships account for the ________ percentage of firms and the ________ percentage of profits
A) smallest; smallest B) smallest; largest C) largest; smallest D) largest; largest
Sierra likes chocolate-covered deviled eggs. After eating 10 chocolate-covered deviled eggs, she switches to strawberry ice cream covered in sauerkraut. We can conclude that
A. Sierra is minimizing her utility. B. at this point, the chocolate-covered deviled eggs have a lower marginal utility per dollar spent than that of strawberry ice cream covered in sauerkraut. C. the chocolate-covered deviled eggs made Sierra sick. D. the chocolate-covered deviled eggs now have a negative marginal utility.