A firm calculated that the income elasticity of demand for its signature product was equal to (+)0.87. Based on this information, we can say that the firm's product is:
a. A substitute good
b. A complementary good
c. An inferior good
d. A normal good
Answer: A normal good
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Economic fluctuations in the United States have been less extreme since the 1950s
a. True b. False Indicate whether the statement is true or false
The marginal revenue that would be derived from producing a fourth unit of output is
A. $20.
B. $16.
C. $12.
D. $8.
Figure 10-9
If the economy were operating at point a in , resource prices would tend to
a.
decrease and move the economy toward point c.
b.
decrease and move the economy toward point b.
c.
increase and move the economy toward point c.
d.
increase and move the economy toward point b.
Which of the following is least likely to increase labor productivity?
A. Improved labor skills. B. Increased managerial capabilities. C. A safer work environment. D. Technological advances.