Which of the following is true?
A) If the income elasticity of demand f is greater than 0, then the good is labeled as inferior.
B) The law of diminishing marginal utility states that utility declines as more of a good is consumed.
C) The law of demand states that as the price of a commodity rises, the changes in consumer surplus is negative.
D) If the cross-price elasticity of demand between two goods is negative, then the two goods are complements.
Answer: D
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Agriculture in Argentina became more efficient when ____ were introduced
A) subsidies. B) property rights. C) tariffs. D) regulations
Agricultural price supports have been criticized because they:
A. Hasten the exodus of labor from agriculture B. Subsidize consumers at the expense of farmers C. Help large-scale farmers rather than small farmers D. Create product shortages
The demand for automobiles fell when gasoline prices increased. Which of the following is likely to happen in this case, assuming all else equal?
A) The labor demand curve of automobile companies will shift to the left. B) The labor demand curve of automobile companies will shift to the right. C) The supply of labor to the automobile industry will decrease. D) The supply of labor to the automobile industry will increase.
Assuming price elasticity of demand is reported as an absolute value, a good with unit elastic demand has an elasticity:
A. less than one, but greater than zero. B. greater than one. C. between zero and one. D. equal to one.