1. When income falls, the demand for an inferior goods
rev: 07_25_2015_QC_CS-20002
Has a smaller change than the income change.
Stays the same.
Increases.
Decreases.
2. Elasticity of supply looks at
How much quantity demanded changes with a change in price.
How responsive sellers are to a change in price.
The responsiveness of sellers to a change in consumer's incomes.
How responsive producers are to a change in quantity demanded.