Sam's income elasticity of demand for Product A is 1.15, while his income elasticity of demand for Product B is –1.15 . Given these values, what will happen to Sam's consumption of Products A and B if his income increases by 12 percent?
a. Sam's consumption of Product A will fall, while his consumption of Product B will rise
b. Sam's consumption of Product A will rise, while his consumption of Product B will fall.
c. Sam's consumption of Product A will fall, while his consumption of Product B will remain the same.
d. Sam's consumption of Product A will remain the same, while his consumption of Product B will fall.
b
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
A demand curve for concert tickets would show the
What will be an ideal response?
Democracy tends to push politicians toward the ideal point of the ______ voter.
A. median B. first C. final D. representative
Refer to the information provided in Figure 6.8 below to answer the question(s) that follow.
Figure 6.8Refer to Figure 6.8. The ________ movie rental has a marginal utility of zero.
A. first B. second C. third D. fourth