Refer to the following graph. A decrease in demand is reflected as
a. a shift of the demand curve from D to D1.
b. a shift of the demand curve from D to D2.
c. movement from point B to A along demand curve D.
d. movement from point A to C when the price is $12.50.
b. a shift of the demand curve from D to D2.
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When income increases by 1%, the quantity demanded of a good decreases by 2%. What is the income elasticity of the good? Is the good normal or inferior? Why?
What will be an ideal response?
If minimum wage legislation does not cause unemployment, then:
A. those who work for minimum wage will benefit. B. firms will generally gain by earning higher profits. C. minimum wages may still be binding for many employees. D. most likely the government won’t study how minimum wage legislation may affect employment.