Heath's income elasticity of demand for concerts is 2 . All else equal, this means that if his income increases by 10 percent, he will purchase tickets for
a. 2 percent more concerts.
b. 5 percent more concerts.
c. 10 percent more concerts.
d. 20 percent more concerts.
d
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A good will have a more elastic demand, the
a. greater the availability of close substitutes. b. more broad the definition of the market. c. shorter the period of time. d. more it is regarded as a necessity.
____________ is a state of preferring a certain return to an uncertain prospect that generates the same expected return.
Fill in the blank(s) with the appropriate word(s).
Refer to the following graph. If the price of bagels falls, the budget constraint in the graph will rotate:
A. out and become flatter. B. in and become steeper. C. in and become flatter. D. out and have the same slope.
The table below shows the number of labor hours required to produce one gallon of wine and one pound of cheese in the United States and France. The United States has a comparative advantage in the production of Labor hours to make:In the United StatesIn France1 gallon of wine4.001.001 pound of cheese1.002.00
A. both goods. B. neither cheese nor wine. C. only cheese. D. only wine.