The above figure shows three different Engel curves. Rank them in terms of income elasticity
What will be an ideal response?
Engel curve A implies that a certain level of income is required before any of the good is purchased. Engel curve B implies that the quantity demanded is proportional to income (unit elastic). Engel curve C implies that the good is a necessity since it would be consumed even if income were zero. Thus _A > _B > _C.
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___________ is the best day to find low fares. This is a departure from the conventional wisdom of recent years, when _________ was considered the best bet.
Fill in the blank(s) with the appropriate word(s).
All of the following are ways by which existing firms can deter the entry of new firms into an industry except
A) continuously producing new and improved products. B) advertising products aggressively. C) threatening to raise prices. D) earning less than maximum profit.