For Product X, the income elasticity of demand is 1.16. Which of the following is therefore definitely TRUE?
A) Product X is a necessity.
B) Product X is income elastic.
C) Product X is a substitute for some other good.
D) Product X is something that mostly poor people will buy.
B
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In the United States since 1970, the poverty rate for blacks has been about:
a. 1?2 percentage points higher than the poverty rate for whites. b. twice the poverty rate for whites. c. three times the poverty rate for whites. d. five times the poverty rate for whites.
Because of its extremely low savings rate the U.S. borrows almost $____ billion dollars a day from ___________ to finance our federal budget and trade deficits.
Fill in the blank(s) with the appropriate word(s).
If the demand for product X is inelastic, a 4 percent increase in the price of X will:
A. decrease the quantity of X demanded by more than 4 percent. B. decrease the quantity of X demanded by less than 4 percent. C. increase the quantity of X demanded by more than 4 percent. D. increase the quantity of X demanded by less than 4 percent.
Suppose Alexander is successful in establishing a profitable market for his vegan bakery in what is a monopolistically competitive industry. In the long run, Alexander will most likely find it ________ to remain profitable as he faces ________ competition in the vegan bakery market.
A) easier; more B) harder; more C) easier; less D) harder; less