Economists distinguish a "normal" good from an "inferior" good by focusing on
A) how a change in income effects the demand for that good.
B) the good's quality.
C) the good's durability.
D) the good's desirability.
E) all of the above.
A
Economics
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For a firm in monopolistic competition, innovation and product development are
A) senseless because economic profit is always zero in the long run. B) necessary in order to have a chance of earning at least a short-run economic profit. C) inconsequential because each firm produces a different product. D) necessary to allow new firms to enter. E) uncommon because other firms already produce similar products.
Economics
The price elasticity of demand ________ in value when moving downward along a ________ line demand curve
A) falls; straight B) rises; curved C) falls, curved D) rises; straight
Economics