After John's income rose by 8 percent, the amount of chicken he consumed fell by 2 percent. This means that
a. his income elasticity for chicken is positive
b. chicken is a normal good for John
c. his demand curve for chicken shifted to the left
d. his demand curve for chicken shifted to the right
e. John is spending more of his income on chicken than before
C
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In a production possibilities frontier model, a point inside the frontier is
A) productively and allocatively inefficient. B) productively inefficient. C) productively efficient. D) allocatively efficient.
Opening trade between a nation that has "cheap labor" and one that has "expensive labor" will
a. lower the standard of living in both countries. b. raise the standard of living in both countries. c. raise the standard of living in the "expensive labor" country and lower the standard of living in the "cheap labor" country. d. raise the standard of living in the "cheap labor" country and lower the standard of living in the "expensive labor" country.