When the income elasticity of demand for a good is negative, one can correctly conclude that:
a. the good is a normal good.
b. the good is an inferior good.
c. the good is a substitute.
d. the good is a complement.
e. total revenue will decrease when the price increases.
b
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Which of the following is consistent with moving from a surplus to equilibrium in the market for foreign currency exchange?
a. the exchange rate falls causing U.S. residents to import more b. the exchange rate falls causing U.S. residents to import less c. the exchange rate rises causing U.S. residents to import more d. the exchange rate rises causing U.S. residents to import less
The demand for LED TVs increases. As a result
A) the wage rate in the LED TV industry increases and the quantity demanded of workers increases. B) the wage rate in the LED TV industry increases and the quantity supplied of workers increases. C) the demand for labor increases and the supply of labor also increases, leaving wages unchanged. D) the demand for labor increases, but since the supply curve of labor is perfectly elastic, the wage rate does not change.