A good is considered by economists to be inferior if
a. consumers buy less when price rises
b. consumers buy less when income rises
c. consumers buy less when price falls
d. consumers buy more when income rises
e. better quality goods exist
B
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During a recession, the unemployment rate
A) is, by definition, above 25 percent. B) is, by definition, above 10 percent. C) usually increases but not necessarily to 10 percent or 25 percent. D) remains constant. E) usually decreases.
If saving equals $200 when real disposable income equals $1,000, the break-even income is
A) less than $1,000. B) greater than $1,000. C) equal to $1,000. D) equal to $1,200.
Which of the following statements is? true?
A. The longer any price change? persists, the greater the elasticity of demand. B. The closer the substitutes for a particular commodity and the more substitutes there? are, the more inelastic will be its price elasticity of demand. C. The smaller the share of a? person's total budget that is spent on a? commodity, the greater that? person's price elasticity of demand is for that commodity. D. The demand for necessities is likely to be? elastic, while the demand for luxuries is likely to be inelastic.
For a perfectly competitive firm, when MC is less than MR
A. economic profits must be positive. B. the producer has an incentive to decrease output. C. the producer has an incentive to expand output. D. the producer has no incentive to change production.