An inferior good is one for which
a. the compensated demand curve fails to be downward sloping.
b. higher prices have relatively little effect on the quantity demanded.
c. the income elasticity is positive but less than 1.
d. increases in income result in lower quantities demanded.
d. increases in income result in lower quantities demanded.
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The amount of a good sold in a market at a particular price cannot exceed the quantity
A. demanded at that price. B. supplied at that price. C. sold when there is a price floor. D. sold when there is a price ceiling.
"If you hire 1 worker, the worker can produce 20 pizzas a day. If you hire a 2nd worker, that worker can produce 10 more pizzas. If you hire a 3rd worker, that worker can produce 2 more pizzas a day"
A graph displaying this relationship between the number of employees and total pizza output per day would show A) a positive linear relationship. B) an upward-sloping curve that becomes less steep. C) a negative linear relationship. D) a negatively-sloped curve that becomes less steep.
There are many cattle ranchers in the world, and there are also many McDonald's restaurants in the world. Why, then, does a McDonald's restaurant face a downward-sloping demand curve while a cattle rancher faces a horizontal demand curve?
What will be an ideal response?
Sam's income elasticity of demand for Product A is 1.15, while his income elasticity of demand for Product B is –1.15 . Given these values, what will happen to Sam's consumption of Products A and B if his income increases by 12 percent? a. Sam's consumption of Product A will fall, while his consumption of Product B will rise
b. Sam's consumption of Product A will rise, while his consumption of Product B will fall. c. Sam's consumption of Product A will fall, while his consumption of Product B will remain the same. d. Sam's consumption of Product A will remain the same, while his consumption of Product B will fall.