If income elasticity for a good or service is ______, then we can say that the good or service is ______.
A. zero; inferior
B. negative; normal
C. positive; inferior
D. positive; normal
D. positive; normal
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If automobile commuters are asked in a survey whether their city needs additional freeways, the answers will reveal
A) almost nothing about the demand for freeways. B) only one portion of the demand for freeways. C) the demand for freeways but from a biased grou
Economies of scale are illustrated by:
A) a downward sloping long-run average cost curve. B) a flat long-run average cost curve. C) an upward-sloping long-run average cost curve. D) a downward-sloping short-run average total cost curve.
Refer to the above diagram. Rent controls are best illustrated by:
A. quantity E. B. price A. C. price B. D. price C.
The demand for food (a broad group) is more:
A. sensitive to price changes than the demand for beef. B. elastic than the demand for beef (specific commodity). C. inelastic than the demand for beef (specific commodity). D. responsive to price changes than the demand for beef.