Which of the following goods is likely to have an income elasticity of demand that is less than zero?
a. A luxury yacht
b. A beach house
c. A state-of-the-art cellular phone
d. A box of generic macaroni and cheese dinner
e. A dinner at a French restaurant
d
Economics
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Suppose the U.S. can produce 10 units of food and five units of clothing (or any linear combination) and Canada can produce six units of food and three units of clothing (or any linear combination)
What type of trade will occur between these two countries? Explain.
Economics
When the policy rate decreases,
A) IS curve does not change. B) IS curve shifts to the right. C) IS curve shifts to the left. D) LM curve shifts upward. E) LM curve shifts downward.
Economics