As income rises the quantity purchased of normal goods ____ and the quantity purchased of inferior goods _____.
A. rises; rises
B. falls; falls
C. rises; falls
D. falls; rises
C. rises; falls
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A profit-maximizing output for a single-price monopoly is determined by the intersection of the ________ curves and the profit-maximizing price is found on the ________ curve
A) marginal cost and marginal revenue; marginal revenue B) marginal cost and marginal revenue; demand C) total revenue and total cost; total revenue D) marginal cost and average total cost; demand E) demand and supply; supply
Refer to the figure above. What is the price that a perfectly competitive firm would charge?
A) $0 B) $3 C) $6 D) $9
If goods are completely unrelated, their cross price elasticity will
A) be greater than one. B) be less than one. C) be equal to zero. D) be negative.
Which of the following is most vital if the firms in an industry are going to earn economic profit in the long run?
a. an inelastic demand for the product produced by the firms b. an elastic demand for the product produced by the firms c. managerial efficiency d. high barriers to entry into the industry