If incomes are rising, in the market for an inferior good,
a. its price will rise and the quantity exchanged will rise.
b. its price will rise and the quantity exchanged will fall.
c. its price will fall and the quantity exchanged will rise.
d. its price will fall and the quantity exchanged will fall.
d
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Which of the following statements is true?
A) Marginal analysis is a key tool used while optimizing in levels. B) Comparative statics is a tool that can be used in both optimization in levels and optimization in differences. C) Marginal analysis is the comparison of economic outcomes before and after some economic variable is changed. D) Comparative statics involves calculating the incremental cost of moving from one alternative to the next best alternative.
For inferior goods, the income elasticity of demand is negative
Indicate whether the statement is true or false