A change in the distribution of income that leaves total income constant will not shift the market demand curve for a product providing:
a. everyone has an income elasticity of demand of zero for the product.
b. everyone has the same income elasticity of demand for the product.
c. individuals have differing income elasticities for the product, but the average income elasticity for income gainers is equal to the average income elasticity for income losers.
d. any of the above conditions occur.
d
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The prices typically studied in microeconomics are
a. relative prices. b. absolute prices. c. money prices. d. retail prices.
Josh has just eaten another cookie and his total utility increased. This means that Josh's marginal utility for this additional cookie is
A) positive. B) negative. C) zero. D) not determinable without more information.
(Last Word) As a result of the Great Recession of 2007-2009, illegal immigration to the United States:
A. has increased dramatically. B. fell significantly during the recession but has increased since the recession and the illegal immigrant population is growing significantly again. C. illegal immigration to the United States fell significantly and the net flow of illegal immigrants following the recession has been close to zero. D. illegal immigration to the United States fell significantly, and now there is a dramatic backflow that has the total number of illegal immigrants in the United States falling.
If the absolute value of slope of the demand curve is 2.5, price is $6 per unit, and the quantity demanded is 8 units, then the price elasticity of demand is:
A. 1. 6. B. 0.3. C. 1.875. D. 0. 533.