For which of the following goods does the income elasticity of demand most clearly exceed unity?
A. Public goods like roads and bridges
B. Food grains
C. Luxury automobiles
D. Lifesaving drugs
Answer: C
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During a particular year, nominal wages increased by 4 percent but real wages declined by 2 percent. This implies that the price level increased by 6 percent
a. True b. False Indicate whether the statement is true or false
. In what year did the U.S. inflation rate drop drastically to close to –11%?
a. 1917 b. 1921 c. 1929 d. 1945
If gas prices today were $2.00 per gallon, in terms of history, this would be
A. not an all-time high but rather high in inflation-adjusted terms. B. an all-time high in nominal terms. C. about the long-inflation-adjusted term historical average in inflation-adjusted terms. D. an all-time high in inflation-adjusted terms.
Why is the demand for labor downward sloping in the short run?
What will be an ideal response?