If a 1 percent increase in an individual's income leads to a 0.5 percent increase in the demand for a good, the good is considered to be a normal good.

An independent relationship between two variables is shown in a graph by

A) an upward-sloping line. B) a horizontal or a vertical line. C) a downward-sloping line. D) a steeply sloped line. E) any straight line curve.

A firm's average variable cost is $90, its total fixed cost is $10,000, and its output is 1,000 units. Its total cost is

A) less than $85,000. B) between $85,000 and $95,000. C) between $95,000 and $105,000. D) more than $105,000.