When the income elasticity of demand for a good is negative, the good is called a luxury good
a. True
b. False
Indicate whether the statement is true or false
False
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The merchandise trade balance does not include
a. exports of refrigerators b. imports of automobiles c. exports of agricultural products d. shipping and insurance costs e. imports of food items with heavy tariffs
If Pete raises his price of muffins from $2 to $3 and his sales revenue increases from $35,000 to $38,000 . then:
a. the demand for Pete's muffins in this range is price elastic. b. the demand for Pete's muffins in this range is price inelastic. c. the demand for Pete's muffins in this range is unit elastic. d. the percentage change in quantity demanded must exceed the percentage change in product price. e. this is impossible since this would violate the law of demand.