An economist estimates that with every 15 percent increase in income, the quantity of turkey purchased declines by 1.8 percent. From this information one would conclude that turkey is:
A. a luxury.
B. a necessity.
C. a normal good.
D. an inferior good.
Answer: D
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Based on the above table, if the current price level is 100 and the natural unemployment rate is 5 percent, what is the expected inflation rate?
A) 5 percent B) 2 percent C) 12 percent D) 8 percent E) 3 percent
If the price elasticity of demand for apples is greater than 1, an increase in apple prices will
A) raise total revenue. B) lower total revenue. C) not affect total revenue. D) either raise or lower total revenue, but it is impossible to determine which.
In the open-economy macroeconomic model, if a country's interest rate falls, then its
a. net capital outflow and its net exports rise. b. net capital outflow rises and its net exports fall. c. net capital outflow falls and its net exports rise. d. net capital outflow and its net exports fall.
Dumping is sometimes legal under international trade agreements
Indicate whether the statement is true or false