Supply of a food item increases by more than the demand for the food item increases. One thing for certain is that
A) the price of the food item rises.
B) income elasticity of demand is less than 0.
C) the supply curve is price inelastic.
D) real income falls as a result.
E) none of the above
E
You might also like to view...
For a monopoly, when marginal revenue is zero:
A. profits are maximized. B. total revenue is maximized. C. marginal revenue is minimized. D. marginal costs are minimized.
A budget surplus is defined as the amount that the
A. government owes to lenders at any moment in time. B. government spends in any time period. C. government’s expenditures exceed receipts in any time period. D. government’s receipts exceed expenditures in any time period.
A country exports the goods
A) for which its domestic prices are very high compared to the world prices. B) that the economy can produce the most of. C) that the economy can produce at relatively lowest opportunity cost. D) that it cannot sell domestically. E) in which it has a comparative disadvantage.
If an economy's population grows at 3 percent and real GDP grows at 2 percent, then:
a. per capita real GDP is declining. b. the economy's standard of living is increasing. c. per capita real GDP is negative. d. per capita real GDP is growing. e. the economy is experiencing unemployment.