Income elasticity of demand describes:
A. which way the demand shifts in response to a change in price.
B. how much the quantity demanded changes in response to a change in consumers' incomes.
C. how quickly the market will change in response to a change in consumers' incomes.
D. how much the quantity demanded changes in response to a change in price.
Answer: B
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In the traditional Keynesian model, an increase in government spending
A) causes the C + I + G + X line to shift upward by the full amount of the increase in government spending. B) causes the C + I + G + X line to shift upward by an amount less than the increase in government spending. C) causes the C + I + G + X line to shift upward by more than the increase in government spending. D) causes no change in the C + I + G + X line.
Which of the following is not found in the corporate form of business?
a. stocks b. bonds c. state charter d. dividends e. unlimited liability
Tying is a form of price discrimination in which one good called the ____ is tied to a second good called the ____.
Fill in the blank(s) with the appropriate word(s).
The above figure shows the market for steel ingots. What is the change in consumer surplus if the market switches from competitive equilibrium to social optimum?
A) $625 B) $1250 C) $1875 D) $2500