If the income elasticity of a good is positive, we can conclude that the good is
a. an inferior good.
b. a normal good.
c. a luxury good.
d. a necessity.
B
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Draw two graphs: one showing the relationship of average product, marginal product, and total product; the other showing the relationship of AFC, AVC, and ATC. Then relate the shape of the marginal product to that of the marginal cost.
What will be an ideal response?
An improvement in technology would shift which of the following curve(s)?
What will be an ideal response?
Monopolistically competitive markets and oligopolies are similar in that
A) the number of firms is identical. B) the kinked demand curve can be used to analyze the firms' pricing decisions. C) there is mutual interdependence amongst the firms. D) nonprice competition is a tool used.
The competitive firm is a "price taker" and therefore a quality adjuster of product quality. That is, the firm might downgrade or upgrade product quality in response to entry or exiting in the marketplace.
a. true b. false