If the income elasticity of a good is negative, say –1.8, we can infer that the good is a(n)
a. luxury good, such as holiday travel
b. substitute good, such as Pepsi, with Coke available
c. complementary good, such as Pepsi, with a candy bar available
d. inferior good, such as a non-color televison
e. essential good, such as food
D
Economics
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If different people own the different stages of production of a commodity, a contract or market relationship helps to minimize transaction risks and creates economic value
Indicate whether the statement is true or false
Economics
Most economists believe that classical theory describes the world
a. in the short run. b. in the long run. c. in both the short run and the long run. d. in neither the short run nor the long run.
Economics