Assume that a 4 percent decrease in income results in a 6 percent increase in the quantity demanded of a good. The income elasticity of demand for the good is
a. negative, and the good is an inferior good.
b. negative, and the good is a normal good.
c. positive, and the good is an inferior good.
d. positive, and the good is a normal good.
a
Economics
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The U-shaped yield curve in the figure above indicates that short-term interest rates are expected to
A) rise in the near-term and fall later on. B) fall sharply in the near-term and rise later on. C) fall moderately in the near-term and rise later on. D) remain unchanged in the near-term and rise later on.
Economics
Explain why the price elasticity of demand changes along a linear demand curve
What will be an ideal response?
Economics