An industry in which sales tend to magnify cyclical changes in gross domestic product and national income is called:

If a 50 cent increase in price causes the amount purchased to fall by 50 units per week, we know

A) almost nothing about the price elasticity of demand. B) demand is relatively elastic. C) demand is relatively inelastic. D) demand is unit elastic. E) the demand does not obey the law of demand.

If demand for Rolls Royce automobiles rises in an area where incomes have increased, this tells us that a Rolls Royce is

A) a normal good. B) an inferior good. C) a complementary good. D) a substitute good.