If a 10 percent increase in income results in an 8 percent increase in the quantity demanded of a good, the income elasticity of demand equals ________ and the good is ________ good

Greater wealth makes people _____________ willing to spend on consumption, causing __________ the economy's AD curve

A) more; movement down along B) more; a rightward shift of C) less; movement up along D) less; a rightward shift of

If the demand curve facing a firm is perfectly elastic, then:

A. it can increase its total revenue by lowering the price of its product. B. its marginal revenue will equal price. C. its marginal revenue schedule decreases twice as fast as the demand curve. D. its marginal revenue schedule will decrease at an increasing rate.