Assume the income elasticity for a particular good has been estimated to be -0.68. Based on this information, we can infer that the good is inferior and a necessity

Explain the potential costs of high-powered incentives by considering the case of providing incentives to police officers. Would it be a good idea to pay higher wages to police officers if they make more arrests?

What will be an ideal response?

Rent seeking in the form of lobbying for an increase in import tariffs by domestic producers

A) increases consumer surplus. B) increases total welfare. C) increases the deadweight loss. D) None of the above.