If an increase in income results in a rightward parallel shift of the demand curve, then at any given price, the price elasticity of demand will have
A) increased in absolute terms.
B) decreased in absolute terms.
C) remained unchanged.
D) increased, decreased or stayed the same. It cannot be determined.
B
Economics
You might also like to view...
Explain the reasons for a decrease in the rate of illegal immigration in the United States in recent years
What will be an ideal response?
Economics
Which of the following statements about deposit/refund systems is INCORRECT?
a. Most deposit/refund systems in the United States are used for beverage containers and lead-acid batteries. b. Some nations use deposit/refund systems for automobile bodies. c. The deposit is imposed at the time of purchase like a retail disposal charge. d. To be a viable system, the refund must be exactly equal to the deposit.
Economics