The relationship between a change in consumer income and a resulting change in demand for a good is
a. demand elasticity.
b. income elasticity of demand.
c. cross elasticity of income demand.
d. supply elasticity.
b
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When the unanticipated inflation rate is zero
A. creditors gain at the expense of debtors. B. both creditors and debtors lose at the expense of the government. C. debtors gain at the expense of creditors. D. neither creditors not debtors gain or lose.
Which of the following is TRUE of the European Union's cap-and-trade program?
A. Governments subsidize firms to develop devices to reduce pollution. B. Firms are forced to shut down when they exceed their pollution limits. C. Firms can trade pollution permits to meet their pollution limits. D. Firms are taxed based on the their pollution levels.
When I buy an $12.00 movie ticket rather than two paperback books, the opportunity cost of going to the movie is the two paperback books I did not buy
Indicate whether the statement is true or false
If a state requires all drivers to buy auto insurance, the problem of adverse selection is eliminated
Indicate whether the statement is true or false