question
If the price of tea is below its equilibrium level then,
a) the demand for tea will decrease
b) the market for tea has cleared
c) sellers will be stuck with unsold tea
d) there is a shortage of tea
a) the demand for tea will decrease
b) the market for tea has cleared
c) sellers will be stuck with unsold tea
d) there is a shortage of tea
answer
d) there is a shortage of tea
question
When a binding price ceiling is imposed in the market, at the ceiling price,
a) the quantity demanded exceeds the quantity supplied
b) the quantity demanded equals the quantity supplied
c) the quantity demanded is less than the quantity supplied
d) the quantity demanded is artificially restricted by the price ceiling
a) the quantity demanded exceeds the quantity supplied
b) the quantity demanded equals the quantity supplied
c) the quantity demanded is less than the quantity supplied
d) the quantity demanded is artificially restricted by the price ceiling
answer
a) the quantity demanded exceeds the quantity supplied
question
If Goods X and Y are complements, if the price of Good X decreases, this will cause a movement ________ the demand curve for Good X and a ________ shift in the demand for Good Y.
a) down; leftward
b) down; rightward
c) up; leftward
d) up; rightward
a) down; leftward
b) down; rightward
c) up; leftward
d) up; rightward
answer
b) down; rightward
question
If Good X an Y are substitutes in production, if the price of Good X decreases, this will cause a movement _______ the supply curve for Good X and a _____ shift in the supply curve for Good Y.
a) down; leftward
b) down; rightward
c) up; leftward
d) up; rightward
a) down; leftward
b) down; rightward
c) up; leftward
d) up; rightward
answer
b) down; rightward
question
A technological advancement in the production of LED light bulbs will result in ______.
a) an upward movement along the supply curve
b) a downward movement along the supply curve
c) a rightward shift of the supply curve
d) a leftward shift of the supply curve
a) an upward movement along the supply curve
b) a downward movement along the supply curve
c) a rightward shift of the supply curve
d) a leftward shift of the supply curve
answer
c) a rightward shift of the supply curve
question
If the government removes the surplus that results from an agricultural price floor, all producers receive a ______ price and all consumers pay a _______ price than the equilibrium price.
a) lower; lower
b) lower; higher
c) higher; lower
d) higher; higher
a) lower; lower
b) lower; higher
c) higher; lower
d) higher; higher
answer
d) higher; higher
question
As a result of a technology advance in the production of your firm's product, you should anticipate a _____ price for your product than the current equilibrium price and a ______ equilibrium quantity than the current equilibrium quantity.
a) higher; higher
b) higher; lower
c) lower; higher
d) lower; lower
a) higher; higher
b) higher; lower
c) lower; higher
d) lower; lower
answer
c) lower; higher
question
Use the following general linear demand relation:
Qd = 680 - 9P + 0.006M - 4Pr
Where M is income and Pr is the price of a related good, R. If M = $15,000 and Pr = $20 and the supply function is Qs = 30 + 3P, equilibrium p rice and quantity are, respectively,
a) P = $55 and Q = 195
b) P = $6 and Q = 38
c) P = $12 and Q = 200
d) P = $50 and Q = 170
e) P = $40 and Q = 250
Qd = 680 - 9P + 0.006M - 4Pr
Where M is income and Pr is the price of a related good, R. If M = $15,000 and Pr = $20 and the supply function is Qs = 30 + 3P, equilibrium p rice and quantity are, respectively,
a) P = $55 and Q = 195
b) P = $6 and Q = 38
c) P = $12 and Q = 200
d) P = $50 and Q = 170
e) P = $40 and Q = 250
answer
a) P = $55 and Q = 195
question
Use the following general linear demand relation:
Qd = 680 - 9P + 0.006M - 4Pr
where M is income and Pr is the price of related good, R. If M = $15,000 and Pr = $20 and the supply function is Qs = 30 + 3P, then, when the price of the good is $40.
a) there is equilibrium in the market
b) there is a shortage of 180 units of the good
c) there is a surplus of 180 units of the good
d) there is a shortage of 80 units of the good
Qd = 680 - 9P + 0.006M - 4Pr
where M is income and Pr is the price of related good, R. If M = $15,000 and Pr = $20 and the supply function is Qs = 30 + 3P, then, when the price of the good is $40.
a) there is equilibrium in the market
b) there is a shortage of 180 units of the good
c) there is a surplus of 180 units of the good
d) there is a shortage of 80 units of the good
answer
b) there is a shortage of 180 units of the good
question
Scientists have developed a bacterium they believe will lower the freezing point of agricultural products. This innovation could save farmers $1 billing a year in crops now lost to frost damage. If this technology becomes widely used, what will happen to the equilibrium price and quantity in, for example, the potato market?
a) price will decrease; quantity will decrease
b) price will decrease; quantity will increase
c) price will increase; quantity will decrease
d) price will increase; quantity will increase
e) the change in equilibrium price and quantity is indeterminate.
a) price will decrease; quantity will decrease
b) price will decrease; quantity will increase
c) price will increase; quantity will decrease
d) price will increase; quantity will increase
e) the change in equilibrium price and quantity is indeterminate.
answer
b) price will decrease; quantity will increase
question
Use the following demand and supply functions:
Demand: Qd = 900 - 60P
Supply: Qs = -200 + 50P
if the price is currently $11, there is a
a) surplus of 110 units
b) shortage of 240 units
c) surplus of 350 units
d) shortage of 700 units
Demand: Qd = 900 - 60P
Supply: Qs = -200 + 50P
if the price is currently $11, there is a
a) surplus of 110 units
b) shortage of 240 units
c) surplus of 350 units
d) shortage of 700 units
answer
a) surplus of 110 units
question
Use the following general linear demand relation:
Qd = 100 - 5P + 0.004M - 5Pr
where P is the price of good X, M is income, and Pr is the price of a related good, R. Income is $100,000, the price of the related good is $20, and the supply function is Qs = 150 + 5P. What is the equilibrium price?
a) $30
b) $25
c) $40
d) $35
e) $50
Qd = 100 - 5P + 0.004M - 5Pr
where P is the price of good X, M is income, and Pr is the price of a related good, R. Income is $100,000, the price of the related good is $20, and the supply function is Qs = 150 + 5P. What is the equilibrium price?
a) $30
b) $25
c) $40
d) $35
e) $50
answer
b) $25
question
Use the following general linear supply function:
Qs = 40 + 6P - 8Pi + 10F
where Q is quantity supplied of the good, P is the price of the goo, P. i is the price of an input, and F is the number of firms producing the good. Now suppose Pi = $40 and F = $50, what is the largest amount of the the good that firms will supply when the price of the good is $20?
a) 340 units
b) 220 units
c) 120 units
d) 80 units
Qs = 40 + 6P - 8Pi + 10F
where Q is quantity supplied of the good, P is the price of the goo, P. i is the price of an input, and F is the number of firms producing the good. Now suppose Pi = $40 and F = $50, what is the largest amount of the the good that firms will supply when the price of the good is $20?
a) 340 units
b) 220 units
c) 120 units
d) 80 units
answer
a) 340 units
question
Assume the demand function for good X can be written as
Qd = 80 - 3Px + 2Py + 10I
where Px = the price of X, Py = the price of good Y, and I = Consumer Income. According to this equation,
a) a rise in the price of Y would cause the demand for X to decrease
b) X and Y are complements
c) X is an inferior good
d) X and Y are substitutes
Qd = 80 - 3Px + 2Py + 10I
where Px = the price of X, Py = the price of good Y, and I = Consumer Income. According to this equation,
a) a rise in the price of Y would cause the demand for X to decrease
b) X and Y are complements
c) X is an inferior good
d) X and Y are substitutes
answer
d) X and Y are substitutes
question
In the market for cell phones, all of the following would cause the supply of cell phones to change except:
a) an improvement in the technology used to produce cell phones
b) an increase in the cost of labor used to produce cell phones
c) a change in cell phone producers' expectations
d) an increase in the number of buyers in the market for cell phones
a) an improvement in the technology used to produce cell phones
b) an increase in the cost of labor used to produce cell phones
c) a change in cell phone producers' expectations
d) an increase in the number of buyers in the market for cell phones
answer
d) an increase in the number of buyers in the market for cell phones
question
As the price of milk increases, what would reasonably be expected to happen to the equilibrium price and quantity of cereal? (Milk and cereal are complements)
a) equilibrium price would increase and equilibrium quantity would decrease
b) equilibrium price and quantity would both decrease
c) equilibrium price would decrease and equilibrium quantity would increase
d) equilibrium price and quantity would both increase
a) equilibrium price would increase and equilibrium quantity would decrease
b) equilibrium price and quantity would both decrease
c) equilibrium price would decrease and equilibrium quantity would increase
d) equilibrium price and quantity would both increase
answer
b) equilibrium price and quantity would both decrease
question
Assume the costs of production in the US auto industry are rising and, at the same time, the price of Japanese-made autos are decreasing. What would reasonably be expected to happen to the equilibrium price and quantity of US-made autos?
a) Price will increase; quantity cannot be determined
b) Price will decrease; quantity cannot be determined
c) Quantity will increase; price cannot be determined
d) Quantity will decrease; price cannot be determined
a) Price will increase; quantity cannot be determined
b) Price will decrease; quantity cannot be determined
c) Quantity will increase; price cannot be determined
d) Quantity will decrease; price cannot be determined
answer
d) quantity will decrease; price cannot be determined
question
Assume there is a simultaneous decrease in the incomes of people in the market for new homes and a decrease in the wages paid to carpenters, plumbers, and electricians. All else constant, we can predict, with certainty, that in the market for new homes the equilibrium:
a) quantity of new homes will decrease
b) quantity of new homes will increase
c) price of new homes will decrease
d) price of new homes will increase
a) quantity of new homes will decrease
b) quantity of new homes will increase
c) price of new homes will decrease
d) price of new homes will increase
answer
c) price of new homes will decrease
question
The price elasticity of demand for electricity in the United States is estimated at -0.13. Which of the following could explain why the price elasticity of demand for electricity is so low?
a) Electricity is an addictive product
b) Electricity is a heavily subsidized industry
c) There are few close substitutes for electricity
d) Households use too many electricity chugging appliances
a) Electricity is an addictive product
b) Electricity is a heavily subsidized industry
c) There are few close substitutes for electricity
d) Households use too many electricity chugging appliances
answer
c) there are few close substitutes for electricity
question
A seller who continues to ear the same gross revenue from sales whether she raises or lowers her prices faces a demand curve that
a) contradicts the law of demand
b) is completely elastic
c) is completely inelastic
d) is unit elastic
e) is vertical
a) contradicts the law of demand
b) is completely elastic
c) is completely inelastic
d) is unit elastic
e) is vertical
answer
d) is unit elastic
question
Fill in the blank: Other things constant, the introduction of generic (non-brand) name drugs on the market. tends to _____ the price elasticity of demand for brand name drugs.
a) increase
b) decrease
c) leave unchanged
d) alter for the better
a) increase
b) decrease
c) leave unchanged
d) alter for the better
answer
a) increase
question
If Sam, the Pizza Man, lowers the price of his pizzas from $6 to $5 and finds that sales increase from 400 to 600 pizzas per week, then the demand for Sam's pizzas in this range is:
a) price inelastic
b) price elastic
c) unit elastic
d) cross elastic
e) income inelastic
a) price inelastic
b) price elastic
c) unit elastic
d) cross elastic
e) income inelastic
answer
b) price elastic
question
If an increase in the price of the product from $1 to $2 per unit leads. to a decrease in the quantity demanded from 100 to 80 units, then demand is:
a) elastic
b) inelastic
c) of unitary elasticity
d) 0
e) inferior
a) elastic
b) inelastic
c) of unitary elasticity
d) 0
e) inferior
answer
b) inelastic
question
If the price elasticity of demand for football tickets is estimated to be 4.5, then a 10 percent increase in football ticket prices would be expected to cause a:
a) 4.5 percent. decrease in quantity demanded
b) 4.5 percent increase in quantity demanded
c) 45 percent decrease in quantity demanded
d) 45 percent increase in quantity demanded
e) 450 percent increase in quantity demanded
a) 4.5 percent. decrease in quantity demanded
b) 4.5 percent increase in quantity demanded
c) 45 percent decrease in quantity demanded
d) 45 percent increase in quantity demanded
e) 450 percent increase in quantity demanded
answer
c) 45 percent decrease in quantity demanded
question
Other things constant, if tuition at a private university rises from $40,000 to $45,000 and revenue for the university decreases, the demand for the good must be
a) increasing
b) inelastic
c) unit elastic
d) elastic
a) increasing
b) inelastic
c) unit elastic
d) elastic
answer
d) elastic
question
Rank the following goods from least to most elastic: gasoline, Unocal gasoline, gasoline at Murph's Unocal Station:
a) gasoline, Unocal gasoline, gasoline at Murph's Unocal Station
b) gasoline, gasoline at Murph's Unocal Station, Unocal gasoline
c) gasoline at Murph's Unocal Station, Unocal gasoline, gasoline
d) Unocal gasoline, gasoline at Murph's Unocal Station, gasoline
e) Unocal gasoline, gasoline, gasoline at Murph's Unocal station
a) gasoline, Unocal gasoline, gasoline at Murph's Unocal Station
b) gasoline, gasoline at Murph's Unocal Station, Unocal gasoline
c) gasoline at Murph's Unocal Station, Unocal gasoline, gasoline
d) Unocal gasoline, gasoline at Murph's Unocal Station, gasoline
e) Unocal gasoline, gasoline, gasoline at Murph's Unocal station
answer
a) gasoline, Unocal gasoline, gasoline at Murph's Unocal Station
question
If the price elasticity of demand for Clean Sheets laundry detergent is 1.50, a 5 percent decrease in the price will lead to which of the following
a) a 1.50 decrease in quantity
b) a 7.5 increase in quantity
c) a 1.5 increase in quantity
d) a 7.5 decrease in quantity
a) a 1.50 decrease in quantity
b) a 7.5 increase in quantity
c) a 1.5 increase in quantity
d) a 7.5 decrease in quantity
answer
b) a 7.5 increase in quantity
question
If a 5 percent increase in consumer incomes least to a 10 percent increase in quantity demanded for a good, the good is a(n) _____ good with an income elasticity of _____.
a) inferior; 2.0
b) normal; 0.5
c) inferior; -0.5
d) normal; 2.0
a) inferior; 2.0
b) normal; 0.5
c) inferior; -0.5
d) normal; 2.0
answer
d) normal; 2.0
question
You are the manager of a local flower shop and you compete with one other flower shop in you area. You estimate the cross-price elasticity of demand between your flowers and your competitor's flowers to be 2.60. If your competitor decreases the price of her flowers by 2 percent, you should expect which of the following?
a) a 5.2 percent decrease in the demand for your flowers
b) a 0.77 percent increase in the demand for your flowers
c) a -0.77 percent decrease in the demand for your flowers
d) a 5.2 percent increase in the demand for your flowers
a) a 5.2 percent decrease in the demand for your flowers
b) a 0.77 percent increase in the demand for your flowers
c) a -0.77 percent decrease in the demand for your flowers
d) a 5.2 percent increase in the demand for your flowers
answer
a) a 5.2 percent decrease in the demand for your flowers
question
IF the demand for umbrellas is price inelastic,
a) changes in price do not affect the number of umbrellas demanded
b) if more umbrellas are sold as the result of a price decrease, total expenditures by consumers on umbrellas will decrease
c) the percentage change in price is less than the percentage change in quantity demanded
d) the percentage change in quantity demanded is greater than the percentage change in price
e) none of the above
a) changes in price do not affect the number of umbrellas demanded
b) if more umbrellas are sold as the result of a price decrease, total expenditures by consumers on umbrellas will decrease
c) the percentage change in price is less than the percentage change in quantity demanded
d) the percentage change in quantity demanded is greater than the percentage change in price
e) none of the above
answer
b) if more umbrellas are sold as the result of a price decrease, total expenditures by consumers on umbrellas will decrease
question
If the price elasticity of DVD recorders is -0.3 and price increases 20%, what happens to the quantity of DVD recorders demanded?
a) quantity decreases by 26%
b) quantity decreases by 6%
c) quantity increases by 15%
d) quantity increases by 21%
a) quantity decreases by 26%
b) quantity decreases by 6%
c) quantity increases by 15%
d) quantity increases by 21%
answer
b) quantity decreases by 6%
question
If the quantity of gidgets demanded increases when the price of gadgets decreases
a) gidgets and gadgets are substitiutes
b) gidgets and gadgets are complements
c) gidgets are normal goods, while gadgets are inferior goods
d) gadgets are normal goods, while gidgets are inferior goods
a) gidgets and gadgets are substitiutes
b) gidgets and gadgets are complements
c) gidgets are normal goods, while gadgets are inferior goods
d) gadgets are normal goods, while gidgets are inferior goods
answer
b) gidgets and gadgets are complements
question
Consider the statement "When the British government tripled university fees for foreign students in Great Britain, about one-half of them left to study in other countries." The implied price-elasticity of demand by foreigners for a British education is (in absolute value)
a) less than 1
b) equal to 1
c) between 1.0 and 1.5
d) greater than 1.5
a) less than 1
b) equal to 1
c) between 1.0 and 1.5
d) greater than 1.5
answer
a) less than 1
question
Suppose the demand for meals at a medium-priced restaurant is elastic. If the management of the restaurant is considering raising prices, it can expect the total revenues the restaurant earns to:
a) increase
b) stay the same
c) decrease
d) cannot be determined with the information given
a) increase
b) stay the same
c) decrease
d) cannot be determined with the information given
answer
c) decrease
question
which of the following is not considered to be a determinant of the price elasticity of demand for a particular good?
a) the number of available substitutes
b) the cost of the good relative to total income
c) the quantity of the good that is supplied to the market
d) the time period under consideration
a) the number of available substitutes
b) the cost of the good relative to total income
c) the quantity of the good that is supplied to the market
d) the time period under consideration
answer
c) the quantity of the good that is supplied to the market
question
Suppose. the price of movies seen at a theater rises from $12 per couple to $20 per couple. The theater manager observes that the rise in price causes attendance at a given movie to fall from 300 person to 200 persons. What is the arc price elasticity of demand for movies?
a) 0.5
b) 0.8
c) 1.0
d) 1.2
a) 0.5
b) 0.8
c) 1.0
d) 1.2
answer
b) 0.8
question
Which of the following pairs of goods would be expected to have a positive cross-price elasticity of demand?
a) coffee and tea
b) gasoline and large SUVs
c) tennis racquets and tennis balls
d) hot dogs and hot dog buns
a) coffee and tea
b) gasoline and large SUVs
c) tennis racquets and tennis balls
d) hot dogs and hot dog buns
answer
a) coffee and tea
question
if quantity demanded is greater than quantity supplied, then according to the market process:
a) an excess supply exists
b) the market is in equilibrium
c) the price will rise
d) the supply curve must be vertical
e) there will be no tendency for the situation to change
a) an excess supply exists
b) the market is in equilibrium
c) the price will rise
d) the supply curve must be vertical
e) there will be no tendency for the situation to change
answer
c) the price will rise
question
a technological advancement in the production of LED light bulbs will result in _____.
a) an upward movement along the supply curve
b) a downward movement along the supply curve
c) a rightward shift of the supply curve
d) a leftward shift of the supply curve
a) an upward movement along the supply curve
b) a downward movement along the supply curve
c) a rightward shift of the supply curve
d) a leftward shift of the supply curve
answer
c) a rightward shift of the supply curve
question
An increase in the cost of flour will shift the supply curve for bread to the _____ and _____ the equilibrium quantity of bread
a) right; increase
b) right; decrease
c) left ; increase
d) left; decrease
a) right; increase
b) right; decrease
c) left ; increase
d) left; decrease
answer
d) left; decrease
question
Use the following demand and supply functions:
Demand: Qd = 50 - 4P
Supply: Qs = 20 + 2P
Equilibrium price and output are
a) P = $5 and Q = 70
b) P = $11 and Q = 3.32
c) P = $12 and Q = 44
d) P = $15 and Q= 50
e) none of the answer choices
Demand: Qd = 50 - 4P
Supply: Qs = 20 + 2P
Equilibrium price and output are
a) P = $5 and Q = 70
b) P = $11 and Q = 3.32
c) P = $12 and Q = 44
d) P = $15 and Q= 50
e) none of the answer choices
answer
e) none of the answer choices
question
A perfectly elastic demand curve has an elasticity coefficient of:
a) 0
b) 1
c) less than 1
d) inifinity
a) 0
b) 1
c) less than 1
d) inifinity
answer
d) infinity
question
If a straight-line demand curve slopes down, price elasticity will:
a) remain the same at all points on the demand curve
b) change between any two points along the demand curve
c) always be greater than one
d) always equal one
e) always be less than one
a) remain the same at all points on the demand curve
b) change between any two points along the demand curve
c) always be greater than one
d) always equal one
e) always be less than one
answer
b) change between any two points along the demand curve
question
IF the price elsticity of demand for Clean Sheets laundry detergent is 0.5, a 2 percent increase in the price will lead to which of the following?
a) a 1 percent increase in quantity
b) a 0.50 percent decrease in quantity
c) a 1 percent decrease in quantity
d) a 0.50 percent increase in quantity
a) a 1 percent increase in quantity
b) a 0.50 percent decrease in quantity
c) a 1 percent decrease in quantity
d) a 0.50 percent increase in quantity
answer
c) a 1 percent decrease in quantity
question
Which of the following pairs of goods is likely to have a negative cross-price elasticity of demand?
a) peanut butter and jelly
b) hot-dogs and hamburgers
c) haircuts and allergy shots
d) TV Cable and Internet Streaming (Netflix)
a) peanut butter and jelly
b) hot-dogs and hamburgers
c) haircuts and allergy shots
d) TV Cable and Internet Streaming (Netflix)
answer
a) peanut butter and jelly
question
A price ceiling that sets the price of a good below market equilibrium will cause:
answer
a shortage
question
If Goods R and S are complements in production, if the price of Good R increases, this will cause a(n) ________ the supply curve for Good S.
answer
a rightward shift
question
A technological advancement in the production of LED light bulbs will result in ________.
answer
a rightward shift in the supply curve
question
If the price of hot dogs increases, this will cause a(n) ________ the demand curve for hot dogs buns and a(n) ________ in the equilibrium price of hot dog buns.
answer
decrease;decrease
question
The market demand curve for a given good shifts when there is a change in any of the following factors EXCEPT
answer
the price of the good
question
If input prices increase, all else equal
answer
quantity supplied will decrease
question
Use the following general linear demand relation:
Qd = 680 - 9P + 0.006M - 4PR where M is income and PR is the price of a related good, R. From this relation it is apparent that the good is______.
Qd = 680 - 9P + 0.006M - 4PR where M is income and PR is the price of a related good, R. From this relation it is apparent that the good is______.
answer
complement for Good R
question
Suppose that the market for engagement rings is in equilibrium. Then political unrest in South Africa shuts down the diamond mines there. South Africa is the world's primary supplier of diamonds. What will happen?
answer
the equilibrium quantity of engagement rings will decrease
question
Which of the following is not considered a factor that influences supply?
answer
the number of buyers
question
Assume there is an improvement in the technology used to produce Blu-ray disc players. What could be expected to happen to the equilibrium price and quantity in the market for Blu-ray disc players?
answer
Equilibrium price will decrease and quantity will increase
question
Assume the costs of production in the U.S. auto industry are rising and, at the same time, the prices of Japanese-made autos are decreasing. What would reasonably be expected to happen to the equilibrium price and quantity of U.S.-made autos?
answer
quantity will decrease and price is ambiguous
question
Which of the following will tend to make the demand for an item more inelastic with respect to price?
a. the amount of time analyzed is quite long
b. there are lots of substitutes available
c. the product is highly durable
d. the proportion of the budget spent on the item is very small
e. no one really wants the product at all
a. the amount of time analyzed is quite long
b. there are lots of substitutes available
c. the product is highly durable
d. the proportion of the budget spent on the item is very small
e. no one really wants the product at all
answer
d) the proportion of the budget spent on the items is very small
question
As price decreases and we move down further along a linear demand curve, the price elasticity of demand will:
answer
decrease
question
Fill in the blank: Other things constant, the introduction of generic (non-brand name) drugs on the market tends to ________ the price elasticity of demand for brand name drugs.
answer
increase
question
If a drought reduced by 20 percent the quantity of wheat available for consumption, by how much would the price of wheat have to rise to clear the market if the price elasticity of demand was .25?
answer
80%
question
If the price of Pepsi-Cola increases from 40 cents to 50 cents per bottle and the quantity demanded decreases from 100 bottles to 50 bottles, then according to the averaging equation, the value of price elasticity of demand for Pepsi-Cola is:
answer
3
question
Over the elastic portion of a demand curve, a decrease in price causes
answer
an increase in total revenue
question
Rank the following goods from most elastic to least elastic: fruit, apples, Granny Smith apples
answer
Granny smith apples, apples, fruit
question
If a 10 percent increase in consumer incomes leads to a 15 percent increase in the quantity demanded for a good, the good is a ________ good with an income elasticity of ________.
answer
normal; 1.5
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