If a product is an inferior good, then its income elasticity of demand is
A) zero.
B) positive.
C) negative.
D) indeterminate.
E) undefined.
C
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The ability to produce a good using fewer resources than someone else is called
A) absolute advantage. B) comparative advantage. C) specialization. D) protectionism.
The Fed ________ intervene in the foreign exchange market by supplying dollars and the Fed ________ intervene in the foreign exchange market by demanding dollars
A) can; can B) cannot; can C) can; cannot D) cannot; cannot
One can determine the consumers' surplus if the _______________ are known
A) tax paid B) maximum buying price C) price paid D) maximum buying price and price paid E) maximum buying price and tax paid
Which of the following exchange rates between the dollar and the peso would a Mexican buyer of American goods most prefer?
A) $0.10 = 1 peso B) $0.08 = 1 peso C) $0.06 = 1 peso D) $0.04 = 1 peso