Regardless of the price of ice cream, Charlie spends $5 a week on ice cream. What can we conclude about Charlie's demand for ice cream?
a. His income elasticity of demand for ice cream is equal to one.
b. His income elasticity of demand for ice cream is equal to zero.
c. His price elasticity of demand for ice cream is equal to one.
d. His price elasticity of demand for ice cream is equal to zero
Ans: c. His price elasticity of demand for ice cream is equal to one.
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Suppose a Cournot oligopoly is operating in a market where demand is linear and marginal costs are constant. We can conclude that the total output supplied is
a. 1/3 of the perfectly competitive output. b. 1/2 of the perfectly competitive output. c. 2/3 of the perfectly competitive output. d. equal to the competitive output.
Explain why a subsidy will not solve the problem of producing less than is socially optimal of a pure public good
Refer to the accompanying table. Pat's opportunity cost of delivering a pizza is making: Pizzas Made Per HourPizzas Delivered Per HourCorey126Pat1015
A. 2/3 of a pizza. B. 12 pizzas. C. 10 pizzas. D. 3/2 of a pizza.
An expansionary fiscal policy would be countercyclical if it was enacted after:
A. equilibrium income fell below potential income. B. unemployment fell. C. equilibrium income rose above potential income. D. inflation rose.