If one's demand for peanut butter decreases as income rises, the income elasticity of demand for the product is

A) elastic.
B) inelastic.
C) unit elastic.
D) negative.

D

Economics

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Select the phrase that correctly completes the following statement. "A decrease in the number of manufacturers caused a decrease in the supply of sailboats. As a result

A) the price of sailboats increased and the quantity of sailboats demanded decreased." B) the equilibrium quantity of sailboats increased." C) the price of sailboats increased and the demand for sailboats decreased." D) the price of sailboats increased. The higher price caused the supply of sailboats to increase."

Economics

Exhibit 21-4 Coffee and tea output (pounds per hour) CountryCoffee Tea Brazil10 5 China  8 8 As shown in Exhibit 21-4, the opportunity cost to Brazil of producing one pound of coffee is:

A. 1 pound of tea. B. 5 pounds of tea. C. 1/2 pound of tea. D. 10 pounds of tea.

Economics