Suppose the demand function is given by Qxd = 8Px0.5 Py0.25 M0.12 H. Then good x is:
A. perfectly inelastic.
B. a normal good.
C. an inferior good.
D. a complement for good y.
Answer: B
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An inferior good is one
A. produced by American industries. B. whose quantity demanded falls when the purchaser’s income rises. C. ordinarily bought by college students from college-town merchants. D. suitable for a garage sale.
A monopolist has the power to set price, but is not entirely free to set the price of its product. Explain
What will be an ideal response?
The world's economies can be divided into four main categories according to their annual per-capita income levels. Which one of the following is NOT one of the categories?
A) low-income B) upper middle-income C) high-income D) lower middle-income E) middle-income
When Canadian firms outsource accounting services to the United States, in markets for the labor of accountants,
A) equilibrium employment and the market clearing wage rate will both increase in Canada, but equilibrium employment and the market clearing wage rate will both decrease in the United States. B) equilibrium employment and the market clearing wage rate will both decrease in Canada, but equilibrium employment and the market clearing wage rate will both increase in the United States. C) equilibrium employment and the market clearing wage rate will both increase in Canada and in the United States. D) equilibrium employment and the market clearing wage rate will both decrease in Canada and the United States.