Huey and Steve can grow potatoes or tomatoes. The table above shows the pounds of potatoes and tomatoes Huey and Steve can grow in a week. Based on the table, which of the following statements is correct?
A) Steve has a comparative advantage in both potatoes and tomatoes.
B) Huey has an absolute advantage in potatoes only.
C) Steve has an absolute advantage in both potatoes and tomatoes.
D) Huey has an absolute advantage in both potatoes and tomatoes.
E) Steve has an absolute advantage in potatoes only.
D
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Which of the following statements best describes a normal good?
A) A normal good is a good that is rationed by the government. B) A normal good is a good that is readily available in the market. C) A normal good is a good whose supply increases as its price decreases. D) A normal good is a good whose demand increases with an increase in consumers' income.
Demand is inelastic when a price ________ results in total revenue ________
A) rise; decreasing B) fall; increasing C) rise, increasing D) fall, remaining the same