When income increases by 1%, the quantity demanded of a good decreases by 2%. What is the income elasticity of the good? Is the good normal or inferior? Why?
What will be an ideal response?
The income elasticity is -2. The good is inferior because the income elasticity is negative.
Economics
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Under which of the following sets of circumstances is it definitely the case that the average product increases as more labor is hired?
A) Total product increases as more labor is hired. B) The marginal product is equal to the average product. C) The marginal product is positive. D) The marginal product is greater than the average product. E) The marginal product is less than the average product.
Economics
A market structure in which a small number of firms compete is called
A) perfect competition. B) monopolistic competition. C) oligopoly. D) monopoly.
Economics