"Income elasticity of demand is always positive." Do you agree or disagree? Explain
What will be an ideal response?
Disagree. Income elasticity of demand can be positive or negative. For normal goods, an increase in income results in an increase in demand. For inferior goods, however, an increase in income results in a decrease in demand.
Economics
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Which is true about M1?
a. it is the sum of US coins and currency b. it is the sum of US coins and currency, and checking accounts c. it is the sum of US coins and currency, checking and savings accounts d. it is the sum of US coins and currency, checking accounts, savings accounts, and large CDs
Economics
Refer to above figure. With free trade and no tariffs, what is the quantity of Widgets imported?
What will be an ideal response?
Economics