Recall the text's discussion of the ten largest U.S. industries by value added in 1860 and 1910 . The emergence of tobacco products and malt liquors as major industries by 1910 suggests that
a. these goods are highly income elastic.
b. these goods are highly income inelastic.
c. these goods are price inelastic.
d. these goods exhibit economies of scale in production.
a. these goods are highly income elastic.
Economics
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A horizontal demand curve for a good could arise because consumers
A) are irrational. B) are not sensitive to price changes. C) view this good as identical to another good. D) have no equivalent substitutes for this good.
Economics
The above figure shows the market demand curve for mobile telecommunications (time spent on a mobile phone). If the price were $2.50, consumer surplus equals
A) $301.00. B) $924.50. C) $1,225.50. D) $0
Economics