If the quantity effect outweighs the price effect of a price increase, then demand is:

A. elastic.
B. inelastic.
C. unit elastic.
D. normal.


A. elastic.

Economics

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Refer to Figure 3-1. If the product represented is a normal good, an increase in income would be represented by a movement from

A) A to B. B) B to A. C) D1 to D2. D) D2 to D1.

Economics

The supply curve of a price-taker firm in the short run is the:

a. firm's average variable cost curve. b. portion of the firm's average total cost curve that lies above average variable cost curve. c. portion of the firm's marginal cost curve that lies above average variable cost curve. d. firm's marginal revenue curve.

Economics

When a tax is regressive, as a person's income rises, the tax rate:

a. stays the same. b. decreases. c. increases. d. increase and then decreases. e. decreases and then increases.

Economics

They gave a lot of these mortgage backed-securities AAA rating

What will be an ideal response?

Economics