The income elasticity of demand for shoes is estimated to be 1.50. We can conclude that shoes:
A. have a relatively steep demand curve.
B. have a relatively flat demand curve
C. are a normal good.
D. are an inferior good.
Answer: C
You might also like to view...
A major cost of unemployment is lost production
a. True b. False Indicate whether the statement is true or false
Which of the following is not a cost per unit produced?
a) Total cost; b) Marginal cost; c) Average variable cost; d) Both (a) and (b) are not unit costs.
Given the prevalence of electronic payment mechanisms like credit cards and debit cards and the safety of checks, why is the amount of currency in the hands of the public increasing?
What will be an ideal response?
Suppose that the supply of gasoline decreases. Price will ________ and consumer surplus will ________.
A. increase; increase B. increase; decrease C. decrease; increase D. decrease; decrease