If a person’s income rises and they do not increase their consumption, we can conclude that
a. the good is not inferior.
b. their income elasticity of demand is zero.
c. the good is not normal.
d. no conclusions can be made without knowing the person’s initial income and consumption levels.
c. the good is not normal.
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Refer to the scenario above. Suppose the interest rate is 5 percent. In this case, you will have ________ in your account after one year
A) $533 B) $546 C) $550 D) $580
a change in the full-employment quantity of labor ________ the short-run aggregate supply curve and
What will be an ideal response?
What is the highest price that a firm would be willing to pay for one marketable pollution permit?
A. an amount equal to the purchasing firm's marginal abatement cost B. an amount equal to the social benefit of pollution reduction C. an amount determined by supply and demand in the market D. an amount equal to the selling firm's marginal abatement cost
In the short run, why does a production function eventually display diminishing returns to labor?
A) As the number of workers increases it becomes difficult to monitor them. B) As a firm hires more workers the skills and the work ethic of the additional workers will eventually decline. C) As the number of workers increases eventually the gains from the division of labor and specialization are used up. D) The opportunity cost of hiring additional workers must eventually rise.