If the income elasticity of a good is negative, then
a. the good must be a Giffen good.
b. the substitution and income effects must be moving in the same direction.
c. the Engel curve for this good must be downward sloping.
d. the law of demand must be satisfied for this good.
c. the Engel curve for this good must be downward sloping.
You might also like to view...
In 2006, the European Union tariff on imported bananas from Latin America was €176 a ton. Suppose 2
5 million tons of bananas were imported in 2006 but then the tariff decreased to €152 a ton in 2007 and as a result, 3 million tons were imported in 2007. What is the tariff revenue in 2007? A) €445,000,000 B) €528,000,000 C) €440,000,000 D) €375,000,000
The Haig-Simons definition of income and the Fisher definition of income are virtually identical
a. True b. False
The greatest number of people who live on $1.90 a day live in:
A. China. B. South Asia. C. sub-Saharan Africa. D. None of these is true.
Efficiency in output requires which of the following?
a. MC = MRP. b. MC = MFC. c. MC = MU. d. MC = AVC.