Using sharp increases or decreases in taxes rather than deficits is a better way to prevent distortions in an economy

Suppose a 4 percent increase in income results in a 2 percent decrease in the quantity demanded of a good. Calculate the income elasticity of demand for the good and determine what type of good it is

What will be an ideal response?

Market equilibrium occurs when

A. the quantity demanded equals the quantity supplied. B. the market is changing rapidly. C. other things remain the same. D. buyers get the lowest possible price. E. everyone who wants the good gets the quantity he or she wants.