Inferior goods have an income elasticity of demand that is:
a. positive.
b. negative.
c. 0.
d. greater than 1 in absolute value.
e. equal to 1 in absolute value.
b
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The current exchange rate system has which of the following characteristics?
A) The countries of the European Union have adopted the gold standard. B) Several developing countries in Asia have adopted the Bretton Woods system. C) The United States allows the dollar to float against other major currencies. D) The current global foreign exchange system is a fixed system. E) All developing countries allow their currencies to float against the dollar and other major currencies.
If the market demand for paper remains the same as in Problem 6, calculate the market price, market output, and the economic profit or loss of each firm
What will be an ideal response?