The percentage change in the quantity demanded divided by the percentage change in income refers to the:
a. income elasticity of demand.
b. cross-price elasticity of demand.
c. elasticity of wages.
d. elasticity of labor.
a. income elasticity of demand.
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Many service-sector jobs in the United States have moved to other countries where these jobs are done at a fraction of the cost. The outsourcing of jobs overseas is heavily debated by politicians, policy makers, and economists in the United States
Based on your understanding of trade and the benefits and losses from trade, how do you think outsourcing affects social surplus in the domestic economy?
If demand decreases and supply increases, price will
a. always increase b. always decrease c. increase only if supply increases more than demand decreases d. increase only if supply increases less than demand decreases e. decrease only if supply increases more than demand decreases
Every economy must ration goods in some way because of
a. overpopulation. b. poorly-performing markets. c. the income gap between rich and poor. d. scarcity.
A movement along the aggregate demand curve represents a change in aggregate quantity demanded
a. True b. False Indicate whether the statement is true or false