The number of CDs purchased increased by 50 percent when consumer income increased by 10 percent. Assuming other factors are held constant, CDs would be classified as:
a. social goods.
b. normal goods.
c. Giffen goods.
d. inferior goods.
b
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All straight-line demand curves have the same elasticity value since the slope is constant.
Answer the following statement true (T) or false (F)
Monopolistic competition is a market structure characterized by many small firms selling a homogeneous product.
Answer the following statement true (T) or false (F)
If people come together through the political process and agree to pay taxes and make group decisions about the quantity of public goods produced, they can defeat the free rider problem with laws that require people pay taxes to contribute to public goods
a. True b. False Indicate whether the statement is true or false
Robert Mugabe is:
A. the president of Zimbabwe. B. the economist who invented inflation. C. the head of the World Bank. D. the chairperson of the Federal Reserve.