Nicole's income elasticity of demand for hats is 1.5 . All else equal, this means that if her income increases by 20 percent, she will buy
a. 150 percent more hats.
b. 50 percent more hats.
c. 30 percent more hats.
d. 20 percent more hats.
C
You might also like to view...
If consumers suddenly decide they no longer want to purchase hybrid vehicles, the price of hybrid vehicles will likely ________ and producers will ________ production
A) increase; decrease B) increase; increase C) decrease; decrease D) decrease; increase
The marginal revenue product curve is the
a. same as the supply of labor curve b. price of the good in a competitive market c. marginal physical product curve multiplied by the price of the good d. change in the firm's output generated by the employment of an additional worker e. change in total cost that results from employing an additional worker
Stockholders of a corporation can be regarded as entrepreneurs because they
a. are ultimately the ones who hire or fire managers b. take the risks associated with corporate enterprise c. are compensated for the opportunity costs they incur when they invest their capital in the corporation d. are involved in the major management operations of the corporation e. invest their time and effort in managing the corporation
Firms often seek to borrow money to expand their capital stock, and the price they pay for the money is the interest rate. What happens to the quantity of money supplied if the interest rate increases?
a. It increases. b. It decreases. c. It does not change. d. It depends entirely on the interest rate.