A positive income elasticity of demand for a good means:
a. it is a substitute
b. it is a complement.
c. it is a normal good.
d. it is an inferior good.
c
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A minimum wage set above the equilibrium wage I. increases the supply of labor. II. increases the quantity of labor supplied. III. decreases the demand for labor
A) I only B) II only C) I and II only D) I, II, and III
Why do cartels often break down?
What will be an ideal response?
Monopolistic competition is similar to perfect competition in that:
a. there are only a few firms in the market. b. the entry into and exit from the market is easy. c. there are significant barriers to entry in the market. d. each firm sells a homogeneous product. e. each firm differentiates its product through advertising.
Collusion among sellers will be less attractive when
a. it is difficult to determine if some firms are providing secret price cuts. b. there are a small number of firms in the industry that are easily monitored. c. the demand for the product is relatively stable. d. the demand for the product is highly inelastic.