After John's income rose by 8 percent, the amount of chicken he consumed fell by 2 percent. This means that
a. his income elasticity for chicken is positive
b. chicken is a normal good for John
c. his demand curve for chicken shifted to the left
d. his demand curve for chicken shifted to the right
e. John is spending more of his income on chicken than before
C
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An increase in Meta's wealth from $3,000 to $6,000 raises her utility from 80 units to 100 units. If she is risk averse, with a wealth of $9,000 her utility might be
A) 99 units. B) 114 units. C) 120 units. D) 126 units.
The term "near monies" refers to which of the following? a. Savings and small time deposits, which (unlike currency and checkable deposits) are not immediately available as money in a transaction. b. Mexican pesos and Canadian dollars – the money used by our nearest neighbors
c. Counterfeit money that closely approximates the appearance of real money. d. None of the answers above are correct.
An increase in both the equilibrium price and the equilibrium quantity of a good could not have been caused by a shift in supply alone
a. True b. False Indicate whether the statement is true or false
If the receiver in the "ultimate bargaining game" cares not just about his final wealth level but also about fairness,
A. the allocator will make a one-sided offer. B. the receiver will reject a one-sided proposal. C. the receiver will always receive the full $20. D. the receiver will accept a one-sided offer.