Income elasticity of demand reflects
A) the change in total quantity demanded divided by the total change in income.
B) the responsiveness of the quantity demanded to changes in income, adjusting its relative price so real income does not change.
C) the responsiveness of income of producers to a change in quantity sold of the good.
D) the responsiveness of demand to changes in income.
D
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The natural rate hypothesis states that when the inflation rate ________, in the short run the unemployment rate ________ and in the long run the unemployment rate ________
A) falls, decreases; decreases B) rises, decreases; returns to the natural unemployment rate C) falls, increases; decreases D) falls, decreases; returns to the natural unemployment rate E) rises, decreases; decreases
If the consumption function is expressed as C = a + mpc × YD, then "mpc" represents
A) autonomous consumer expenditure. B) the marginal propensity to consume. C) the expenditure multiplier. D) disposable income.
The bulk of exports from industrial countries are
a. manufactured goods b. primary products c. agricultural goods d. raw materials e. raw sugar products
Refer to Figure 13-4. What is the area that represents the total fixed cost of production?
A) P1bdP3
B) 0P1aQa
C) P0adP3
D) That information cannot be determined from the graph.