If the income elasticity of demand for a good is 0.5, then
a. it is a normal good, and its demand curve will shift to the left if buyers' incomes increase
b. it is a normal good, and its demand curve will shift to the right if buyers' incomes increase
c. it is an inferior good, and its demand curve will shift to the right if buyers' incomes increase
d. it is an inferior good, and its demand curve will shift to the left if buyers' incomes increase
e. there is insufficient information to determine whether the good is normal or inferior
B
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One of the criticisms of Basel 2 is that it is procyclical. That means that
A) banks may be required to hold more capital during times when capital is short. B) banks may become professional at a cyclical response to economic conditions. C) banks may be required to hold less capital during times when capital is short. D) banks will not be required to hold capital during an expansion.
Globalization decreases the interconnectedness between countries
a. True b. False Indicate whether the statement is true or false
At its current level of production a profit-maximizing firm in a competitive market receives $12.50 for each unit it produces and faces an average total cost of $10 . At the market price of $12.50 per unit, the firm's marginal cost curve crosses the marginal revenue curve at an output level of 1,000 units. What is the firm's current profit? What is likely to occur in this market and why?
Which of the following will NOT affect the position of the market supply curve for a good?
A) The government grants a subsidy to the producers for each unit of a good that they produce. B) The price of the good increases. C) The number of sellers in the market increases. D) There is an increase in the prices of the inputs used in production.