If the income elasticity of demand is negative, this means that the good is

a. an inferior good
b. sold at a lower than equilibrium price
c. provided by a monopoly producer
d. provided by competitive producers
e. a normal good

A

Economics

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In the shortrun (specific factors) model, FDI will cause _______________ in the return to capital and land and _______________ in the return to labor in the recipient country.

a. an increase; a decrease b. a decrease; an increase c. no change; an increase d. a decrease; no change

Economics

In the above figure, at a price of $6, a perfectly competitive firm produces ________ and it ________

A) some output; incurs an economic loss B) 0; incurs an economic loss C) 0; does not incur an economic loss or make an economic profit D) 0; makes an economic profit

Economics