The income elasticity of demand for all goods taken together must be
A) zero.
B) -1.
C) +1.
D) between 0 and 1.
Answer: C
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The principle of minimum differentiation
A) results in political parties proposing very similar or possibly identical policies. B) refers to the tendency of competitors to make themselves different in order appeal to the maximum number of clients or voters. C) explains why Burger King, Wendy's, and other fast food restaurants tend to locate far away from each other. D) None of the above answers are correct.
During the 1920s, the discount rate was the major policy tool of the Federal Reserve
Indicate whether the statement is true or false
For lunch, Ramon always eats either a slice of pizza or a hamburger. His weekly lunch budget is $48. Each hamburger costs $6 and each pizza slice costs $3. When deciding how much of each good to buy, Rick knows that 2 hamburgers and 4 pizza slices will give him a utility of 8. What is Ramon’s utility at his utility-maximizing point?
a. 32 b. 48 c. 40 d. 24
Economists use what term to describe the want-satisfying power of a good?
A) demand B) utility C) marginal propensity to consume D) income elasticity