If a consumer's purchases of a product increase as income increases, this good is classified as a(n):
A. normal good.
B. inferior good.
C. substitute good.
D. complementary good.
Answer: A
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Why do some people tip generously at restaurants to which they never plan to return?
What will be an ideal response?
There are several types of barriers to entry that can create a monopoly. Which of the following barriers is the result of government action?
A) public franchise B) control of a key resource C) economies of scale D) network externalities
If average consumer incomes increase proportionately faster than the demand for a product, then the income elasticity of demand for the product is:
A. equal to 1. B. greater than 1. C. greater than zero but less than 1. D. zero.
Refer to the information provided in Figure 3.14 below to answer the question(s) that follow.
Figure 3.14Refer to Figure 3.14. The market for sunglasses is in equilibrium at a price of ________ and a quantity of ________ sunglasses.
A. $60; 450 B. $30; 300 C. $30; 600 D. $90; 300