If the income elasticity of demand for corn is 0.5, then as income increases
A) the demand for corn will increase.
B) the demand for corn will decrease.
C) corn will prove to be an inferior good.
D) the supply curve of corn will shift leftward.
A
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A difference between a share of stock in a corporation and a corporate bond is that
A) the share of stock is a legal claim while the bond is not. B) the bond owner has voting rights within the corporation whereas the stockholder does not. C) the bond owner is entitled to receive a fixed annual coupon payment plus a lump-sum payment at the bond's maturity date, whereas the stockholder is entitled to a share of future profits. D) stocks are issued in return for funds that are lent to the corporation.
Which of the following best illustrates the concept of derived demand?
a. As income rises, the demand for TVs rises. b. A fall in the price of cameras will increase the demand for film. c. A fall in the demand for tires will reduce the demand for rubber. d. When the price of gasoline rises, the demand for automobile repair falls. e. If consumers expect the price of coffee to rise, demand for coffee rises.