When a household spends over 70% of its monthly income on a good, demand will be
A. elastic.
B. unit-elastic.
C. inelastic.
D. elastic, unit-elastic or inelastic depending upon supply.
Answer: A
You might also like to view...
Refer to Figure 5-2. On the above graph, identify the market equilibrium price and quantity, the efficient equilibrium price and quantity, and the value of the deadweight loss resulting from too few people receiving vaccinations
What will be an ideal response?
If the U.S. dollar depreciates, in the long run the United States should experience a
A. Larger deficit in the U.S. current account. B. Lower inflation rate. C. Smaller deficit in the U.S. trade balance. D. Larger deficit in the U.S. capital account.
Five million people working in the manufacturing sector in the United States have lost their jobs between 2000 and 2015, but as of 2013 affiliates of foreign multinationals employed more than 6 million workers in the United States.
Answer the following statement true (T) or false (F)
If the economy starts in long-run equilibrium, a permanent fiscal expansion will cause
A) an increase in exchange rate, E. B) a decrease in exchange rate, E. C) an increase in output, Y. D) a decrease in output, Y. E) shifting of the AA curve up and to the right.