Define Inferior good
Inferior good: It is a good for which, other things equivalent, a rise in income leads to a reduction in demand.
Glynn’s preferences in between work and leisure give in a: (i) wealth effect that exceeds the leisure consequence above point c. (ii) weak preference for working more than 40 hours per week. (iii) substitution effect that exceeds the income effect at wage rates
When the quantity of SCUBA lessons demanded by Hawaiian tourist’s increases from 800 to 1,000 weekly and if the price drops/falls from $30 to $20 per session, by using the arc elasticity formula, the price elasticity of demand will be: (i) 5.555
Table indicate the average retail price of milk and the Consumer Price Index in the year 1980 -1998. Q : Question on elasticity of demand Select Select the right ans wer of the question. The demand for agricultural products is: A) relatively elastic with respect to price. B) relatively inelastic with respect to price. C) relatively elastic with respect to income. D) downward sloping to the individual farmer, b
Select the right ans wer of the question. The demand for agricultural products is: A) relatively elastic with respect to price. B) relatively inelastic with respect to price. C) relatively elastic with respect to income. D) downward sloping to the individual farmer, b
John Bates Clark's marginal productivity theory gives details that the marginal productivity of resources finds out: (w) the true value of human life. (x) an equitable distribution of tax burdens. (y) the income distr
The law of supply states that the amount of a good supplied is: (i) Legally governed by the production regulations. (ii) Inversely related to its absolute price. (iii) Recognized by the consumer tastes in the free market economy. (iv) Positively relat
The law of demand defines that when a good’s price increases, its quantity demanded will drop: (1) No matter what occurs to other variables. (2) When all as well is supposed constant. (3) Since its demand curve shrinks. (4) If substitutes become
Under the negative income tax system demonstrated in this figure, a family of four along with no earned income would have a net as after-tax, the income of: (1) $15,000 per year. (2) $10,000 per year. (3) $5,000 per year. (4) $2,500 per year. (5) $0 p
When an oligopolistic firm increases its price, in that case the demand this faces will be: (1) more elastic if the other firms in the industry raise their prices. (2) less elastic when no other firms in the industry raise their prices. (3) more elast
Assume that many students have fixed “pizza budgets.” When the price per slice falls by $10 to $1 along such demand curve for pizza weekly near a college campus, then the price elasticity of demand for pizza: (w) rises towards infinity. (x
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