Goods that consumers regard as luxuries generally have
a. an income elasticity equal to 1.
b. an income elasticity less than 1.
c. an income elasticity greater than 1.
d. a negative income elasticity.
C
You might also like to view...
All of the following are costs of expected inflation except
A) seigniorage. B) menu costs. C) velocity costs. D) tax distortions.
The change in the level of planned spending that results from a change in the price level is indicated by the movement of the economy along a given
a. aggregate expenditure curve. b. aggregate demand curve. c. aggregate supply curve. d. both aggregate expenditure curve and aggregate demand curve.
Which of the following is directly illegal under the Sherman Act?
A. Price discrimination. B. Tying contracts. C. Price-fixing. D. Interlocking directorates.
Refer to the information provided in Figure 26.5 below to answer the question(s) that follow.
Figure 26.5Refer to Figure 26.5. An increase in the price level shifts the ________ to the ________.
A. IS curve; right B. Fed rule; left C. Fed rule; right D. IS curve; left