A negative income elasticity of demand coefficient indicates that:
A. The product is an inferior good
B. The product follows the law of demand
C. The product is a complementary good
D. The product is a substitute good
A. The product is an inferior good
You might also like to view...
The figure above shows Tanya's consumption possibilities. Tanya spends $100 per month on movies and restaurant meals. The price of a movie ticket is ________ and the price of a restaurant meal is ________
A) $7; $15 B) $10; $10 C) $20; $5 D) $5; $20
Which of the following best describes a situation of economic efficiency?
A) A firm produces to the point at which P = AVC, with MR < MC. B) A firm produces to the point at which P = ATC, with MC < MR. C) A firm produces to the point at which MR = AFC, with P = AVC. D) A firm produces to the point at which MR = MC, with P = MC.