If the average income of the consumers of Good A increased from $400 to $440, and the quantity demanded of Good A increased from 1,200 units to 1,300 units, then the income elasticity of demand for Good A is equal to:

If the current price is less than the market clearing or equilibrium price, we would expect:

A) a surplus. B) downward pressure on price. C) upward pressure on price. D) no change in the market price.

Based on Table 3.1, trade between the United States and Mexico will occur as long as the relative price of shoes is between

A) three computers and one computer. B) three computers and two computers. C) one-half computer and one-third computer. D) six computers and three computers. E) None of the above.