The income effect of a price change refers to the change in the quantity demanded of a good that results from a change in the price of a complementary product
Indicate whether the statement is true or false
FALSE
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Philip purchased one million dollars' worth of New York City bonds. His interest earnings were $100,000 . His total federal tax on this income will be
a. $40,000 . since his marginal tax rate was 40 percent. b. $40,000 . since only 40 percent of capital gains is taxed. c. zero. d. very small, since he had a clever accountant who knew how to use loopholes.
The pursuit of profit will encourage firms to
a. produce efficiently and keep their costs low. b. produce goods and services that consumers value highly relative to costs. c. discover and develop better products and lower-cost production methods. d. All of the above are correct.
Using the above table, the GDP is (in billions of dollars)
A. 8,200. B. 10,200. C. 8,900. D. 9,500.
Among the most important demand side factors explaining homes prices would be the size of the
A. homebuyer's car. B. metropolitan area and home itself. C. home. D. metropolitan area.