Suppose that the income elasticity of demand for fresh vegetables is 0.26 . If buyers' incomes rise by 10 percent, then
a. the demand curve for fresh vegetables will shift to the left
b. the quantity of fresh vegetables demanded will rise by 2.6 percent
c. the quantity of fresh vegetables demanded will rise by 12.6 percent
d. there will be a movement down and to the right on the demand curve for fresh vegetables
e. there will be a movement up and to the left along the demand curve for fresh vegetables
B
You might also like to view...
The Herfindahl-Hirschman Index measures an industry's concentration of
A) employment. B) sales. C) profits. D) productive capital.
Bill purchases property insurance for his office building, which includes coverage for fire damage. The policy offers premium discounts for smoke detectors, fire alarms, fire extinguishers and sprinkler systems
This is an incentive system to help avoid A) adverse selection. B) moral hazard. C) optimal-stopping. D) none of the above
One of the difficulties with an economic policy such as rent control is that
a. politicians do not consider its secondary effects b. economists disagree about the impacts of the policy c. it is difficult to enforce antidiscrimination laws in the rental housing market d. it makes landlords wealthy at the expense of renters e. pressure from landlords resulted in its repeal in many cities
The statistical discrepancy in the balance of payments
a. is always positive b. is always negative c. is always zero d. is either positive, negative, or zero e. is indeterminate