For a normal good, quantity demanded
a. increases as income rises, so the income elasticity of demand is positive
b. increases as income rises, so the income elasticity of demand is negative
c. falls as income rises, so the income elasticity of demand is positive
d. falls as income rises, so the income elasticity of demand is negative
e. remains unchanged as income rises, so the income elasticity of demand is zero
A
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A fishing boat owner sells her entire catch of 20,000 fish and maximizes profit that is equal to $7,000 . Suppose fish prices increase and you are asked to calculate her profit knowing that she now sells 30,000 fish. If fish prices increased by $3 per fish, what can you say about her new profit level?
a. profit > $90,000 b. profit < $97,000 c. profit < $90,000 d. profit > $67,000 e. profit > $10,500
Which of the following would create the most money?
(A) The initial deposit is $3,000 and the required reserve ratio is 10 percent. (B) The initial deposit is $7,500 and the required reserve ratio is 25 percent. (C) The initial deposit is $4,500 and the required reserve ratio is 15 percent. (D) The initial deposit is $6,500 and the required reserve ratio is 20 percent.
Above the shutdown point, a competitive firm's supply curve coincides with its:
A. marginal revenue curve. B. ?marginal cost curve. C. ?average variable cost curve. D. ?average total cost curve.
The government allows firms to engage in price discrimination unless the practice:
A. allows the firm to earn positive economic profits. B. reduces consumer surplus. C. drives rival firms out of business. D. increases prices to consumers.