When the consumer spends less than 1% of his income on a good, demand will be
A. elastic.
B. unit-elastic.
C. inelastic.
D. elastic, unit-elastic or inelastic depending upon supply.
Answer: C
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Since 1960, per capita real GDP in the United States has nearly tripled.
Answer the following statement true (T) or false (F)
The agricultural nation of Luckidom is attempting to answer the three fundamental economic questions. Develop the three questions as they relate to this nation.
A. 1. Should we produce more wheat and fewer soybeans? 2. Should we farm with equipment or by hand? 3. Do the farmers or the governors receive a higher salary? B. 1. Should we farm with equipment or by hand? 2. Do the farmers or the governors receive a higher salary? 3. Should we grow near the riverbed or by the coast? C. 1. Should we use fertilizer? 2. Should we grow near the riverbed or by the coast? 3. Should we produce more wheat and fewer soybeans? D. 1. Should we grow near the riverbed or by the coast? 2. Should we produce more wheat and fewer soybeans? 3. Should we farm with equipment or by hand?
Exhibit 7-2 Cost schedule for pizza production Pizzas LaborCost EnergyCost MaterialsCost 0 $10 $ 0 $ 0 1 10 12 4 2 24 22 8 3 40 30 12 4 60 36 16 5 90 40 20 Exhibit 7-2 shows the labor, energy, and materials cost of making various quantities of pizzas. The table shows that the labor cost of making pizzas will:
A. increase at a decreasing rate. B. decrease at a decreasing rate. C. decrease at an increasing rate. D. increase at an increasing rate.
Which of the following is NOT a result of certification of skills?
A. A profession is formed. B. A stated minimum standard of service is provided. C. A bigger quantity exchanged than that which would have resulted if there were no certification. D. A price higher than that which would have been charged if there were no certification.