If a 5 percent increase in income brings about a 10 percent decrease in the demand for a good, then the
A) good is a normal good.
B) good is an inferior good.
C) income elasticity of demand is 0.5.
D) income elasticity of demand is 2.0.
E) income elasticity of demand is 5.0.
B
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The MCE function represents the
a. marginal cost of enforcement incurred by the government b. marginal cost of the externality linked to environmental pollution c. market cost of a given environmental policy initiative d. extra cost of the engineering approach
Goods like exclusive designer clothes carry with them prestige value linked to their price. As a result, some people demand more of such goods as the price increases. For those people, such goods are Giffen goods.
Answer the following statement true (T) or false (F)
If the number of ITQs issued equals the efficient production level, what is the price of an ITQ?
What will be an ideal response?
The leader in a Stackelberg oligopoly with a linear demand and marginal cost produces ________ than the follower second firm, charges ________ price, and earns ________ than the follower in economic profit.
A) more; the same; more B) more; a higher; less C) less; the same; more D) more; a higher; more