Using the above figure, suppose that roses are a normal good. If there is an increase in income
A) the equilibrium price will rise above $25 per dozen roses.
B) the equilibrium quantity will decrease below 10 dozen roses.
C) we cannot predict what will happen to the equilibrium price.
D) we cannot predict what will happen to the equilibrium quantity.
A
Economics
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If a consumer doubles her quantity of ice cream consumed when her income rises by 25%, then her income elasticity of demand for ice cream is
A) 8.0. B) 4.0. C) .25. D) .08.
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If a firm sells its output at a price greater than AC, it will earn economic profit
a. True b. False Indicate whether the statement is true or false
Economics