Suppose that good X is a luxury and that good Y is a necessity. Which good would you expect to have more price elastic demand?
good X
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The income effect of an increase in the price of salmon
A) refers to the effect on a consumer's purchasing power which causes the consumer to buy less salmon, holding all other factors constant. B) is the change in the demand for salmon when income increases. C) refers to the relative price effect—salmon is more expensive compared to other types of fish—which causes the consumer to buy less salmon. D) is the change in the demand for other types of fish, say trout, that results from a decrease in purchasing power.
The poverty line was originally determined by taking the cost of a minimal food budget for a family and multiplying by 2
Indicate whether the statement is true or false
Forests in the United States, starting from the time the colonists arrived,
a. have always expanded. b. have only shrunk in size. c. have changed little. d. shrank as they were logged and cleared for farms, then rebounded, especially in the twentieth century.
Technology is defined as
A) the maximum output which can be attained from a stock of physical capital. B) society’s pool of applied knowledge concerning the production of goods and services. C) output beyond the production possibilities boundary. D) the utilization of the most advanced machinery.