For U.S. consumers, the income elasticity of demand for fruit juice is 1.1. If the economy enters a recession next year and consumer income declines by 2.5%, what is the expected change in the quantity of fruit juice demanded next year?
A) -2.75%
B) +2.75%
C) -27.5%
D) +27.5%
A
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The ________ are hurt by importing a good
A) domestic consumers of the good B) domestic producers of the good C) domestic governments D) foreign producers of the good E) foreign governments
The law of demand is graphically depicted as a(n)
a. vertical demand curve b. horizontal demand curve c. downward-sloping demand curve d. upward-sloping demand curve e. curved demand line
A firm’s long-run average total cost curve is typically ______ than its short-run average total cost curves.
a. equal to or lower than b. equal to or higher c. higher by a fixed amount d. lower by a fixed amount
Which of the following conditions is TRUE for a profit-maximizing firm in a perfectly competitive industry?
A. MC = AVC B. ATC = AFC C. MR = TC D. MR = MC