Explain normal good or inferior good
In Russia, as per capita income rises from $1,990 to $2,040, ceteris paribus, annual per capita consumption of vodka rises from 475 liters to 500, what is the income elasticity of demand for vodka in Russia? Is it a normal good or inferior good?
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Demand for small tractors is given by: P = 20,000 - Q, where P denotes price in dollars and Q is annual sales. Find the firm's profit-maximizing output, price, and annual profit.
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What does this mean the market is thinking about risk and where Google stock is headed by the end of the year? Furthermore, why doesn't this represent an arbitrage opportunity? (Google is currently at $553 per share.)
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