You and your college roommate eat three packages of Ramen noodles each week. After graduation last month, both of you were hired at several times your college income. Your roommate still enjoys Ramen noodles very much and buys even more, but you plan to buy fewer Ramen noodles in favor of foods you prefer more. When looking at income elasticity of demand for Ramen noodles, yours would
a. be negative and your roommate's would be positive.
b. be positive and your roommate's would be negative.
c. be zero and your roommate's would approach infinity.
d. approach infinity and your roommate's would be zero.
a
You might also like to view...
Recall the Application. Securitization refers to
A) the practice of purchasing loans, repackaging them, and selling them to the financial markets. B) the federal insurance received by home buyers to protect them from declining home values. C) the process used by the Federal Reserve to insure home builders against bank failures. D) the stocks and bonds used as collateral when one financial institution sells mortgages to another financial institution.
If the government decides to impose a new tariff on orange juice from Brazil, the tariff would lead to ________ the tariff revenue collected by the U.S. government
A) no change in B) an increase in C) a decrease in D) an elimination of E) making illegal
If a monopoly firm reduced the price of its product, which of following must have been true?
a. MR > MC b. MR < MC c. MR > AR d. MC > AR
Keynesian policy levers include:
A. Deregulation. B. Fiscal policy. C. Supply-side policy. D. Laissez-faire policy.