The elasticity that measures the responsiveness of consumer demand to changes in income is the:
A. neither the income elasticity, the own price elasticity, nor the cross-price elasticity.
B. own price elasticity.
C. cross-price elasticity.
D. income elasticity.
Answer: D
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All else equal, an increase in government borrowing is likely to cause a(n):
A) leftward shift of the credit demand curve. B) rightward shift of the credit demand curve. C) downward movement along the credit demand curve. D) upward movement along the credit demand curve.
Which of the following is the BEST example of a monopsonist?
A) a household hiring a gardener B) a turnip farmer hiring seasonal help C) Hershey's Chocolate Factory in Hershey, PA D) Vinaka Coffee Shop in Carlsbad, CA
Which of the following flows from the government to the households?
a. Goods and services b. Resources of production c. Taxes d. Government services e. Loans
If banks move a substantial portion of depositors' money from interest-earning checking accounts into money-market deposit accounts, how will the money supply measures be affected?
a. M1 will become smaller, and M2 will become larger. b. Both M1 and M2 will increase in size. c. Both M1 and M2 will decrease in size. d. The size of M1 will be reduced, but M2 will be unchanged.