An inferior good has an income elasticity of demand that is
A) positive.
B) negative.
C) positive but less than 1.
D) zero.
B
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Suppose Always There Wireless serves 100 high-demand wireless consumers, who each have a monthly demand curve for wireless minutes of QdH = 200 - 100P, and 300 low-demand consumers, who each have a monthly demand curve for wireless minutes of QdL = 100 - 100P, where P is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always There Wireless charges $0.35 per minute. If Always There Wireless charges the highest fixed fee that it can without losing the low-demand consumers, what is Always There Wireless's profit from sales for each low-demand consumer?
A. $27.63 B. $37.63 C. $21.13 D. $28.13
Incremental cost is the same concept as ________ cost
A) average B) marginal C) fixed D) variable
Benefits that accrue directly to the decision maker of a market exchange are called:
A. private benefits. B. network benefits. C. external benefits. D. social benefits.
Economists are generally in support of:
A) government restrictions on trade. B) free international trade. C) tariffs to restrict trade. D) subsidizing exports.