Suppose we believe the income response for hamburger consumption is positive (normal) at low income levels but becomes negative (inferior) at high income levels. Is the log-linear demand function a good choice for this particular product?
A) Yes, the log-linear model has an income elasticity that can be positive or negative.
B) No, the log-linear model has a constant income elasticity that cannot change with the income level.
C) No, the Engel curves for this case are vertical lines, and this behavior cannot be represented with the log-linear demand function.
D) none of the above
B
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The quantity supplied of a good, service, or resource is ________ during a specified period and at a specified price
A) the amount that people are able and willing to sell B) the amount that people are willing and able to buy C) the amount that people are able to sell D) the amount that people are willing to sell E) the amount sold
Suppose the market basket of consumer goods and services costs $180 using the base period prices, and the same basket of goods and services costs $300 using the current period prices. The CPI for the current year period equals
A) 166.7. B) 66.7. C) 160.0. D) 60.0. E) 300.0.