For most goods and services the income elasticity of demand is

A) negative.
B) positive.
C) invisible.
D) inverse.

Answer: B

Economics

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Luxury goods have income elasticity:

A) of less than zero. B) between zero and one. C) equal to one. D) greater than one.

Economics

Refer to Figure 12-1. If the firm is producing 200 units

A) it should increase its output to maximize profit. B) it is making a loss. C) it breaks even. D) it should cut back its output to maximize profit.

Economics