An inferior good has an income elasticity of demand that is

A) positive.
B) negative.
C) positive but less than 1.
D) zero.


B

Economics

You might also like to view...

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

Economics

Incremental cost is the same concept as ________ cost

A) average B) marginal C) fixed D) variable

Economics

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.

Economics

Economists are generally in support of:

A) government restrictions on trade. B) free international trade. C) tariffs to restrict trade. D) subsidizing exports.

Economics