If the income elasticity of demand for a good is zero, then
a. the goods inferior.
b. the good is normal.
c. the good violates the Law of Demand.
d. consumption of the good does not change as income changes.
d. consumption of the good does not change as income changes.
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To affect the market outcome, a price ceiling
A) must be set below the black market price. B) must be set below the legal price. C) must be set below the price floor. D) must be set below the equilibrium price.
Whether studying the output of the U.S. economy or how many classes a student will take, a unifying concept is that:
A. wants are limited and resources are unlimited, so trade-offs are unnecessary. B. both wants and resources are unlimited. C. wants are limited and resources are unlimited, so trade-offs have to be made. D. wants are unlimited and resources are scarce, so trade-offs have to be made.