Suppose that you know a good is a normal good for a consumer. Which of the following can you then conclude to be true:
A. The own-price elasticity of demand is less than -1.
B. The income elasticity of demand is greater than 0.
C. The own-price elasticity of demand is greater than -1.
D. The income elasticity of demand is less than 0.
E. Both (a) and (b).
F. Both (a) and (d).
G. Both (b) and (c).
H. None of the above.
Answer: B
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Microeconomics is the branch of economics that deals with which of the following topics?
D. A and C A. The behavior of individual firms and investors E. B and C B. Unemployment and interest rates C. The behavior of individual consumers
If the quantity of fishing poles demanded is represented by the demand equation QD = 60 - P, then to solve for the price of fishing poles, the equation would be rewritten as
A) P = -60 + QD. B) P = QD + 60. C) P = 0.6QD + 10. D) P = 60 - QD.