If a consumer is spending a small portion of his or her income on a good, then the demand for the good is likely to be inelastic
a. True
b. False
Indicate whether the statement is true or false
True
Economics
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State the law of demand and illustrate it. Explain what is meant by the term "price" in the law of demand
What will be an ideal response?
Economics
A firm that is earning zero economic profit should go out of business
a. True b. False Indicate whether the statement is true or false
Economics
An increase in demand will cause
a. an increase in supply. b. a decrease in supply. c. an increase in quantity supplied. d. a decrease in quantity supplied. e. a decrease in equilibrium price.
Economics
An expansionary fiscal policy can be illustrated by a(n):
A. increase in aggregate demand. B. increase in aggregate supply. C. decrease in aggregate demand. D. change in the price level.
Economics