a. Define income elasticity, and state its range of values for normal goods. when income goes up, the quantity demanded of normal good goes. up. b. What's the difference between fixed cost and a sunk cost? fixed cost costs ave can be avoided for example heating cost that onel sunk D 2 dom are not avoidable spilling c. If the average product of labor is rising, does that mean the marginal product milk of labor is also rising? No d. If the price of a complement for good a increases, what happens to the demand curve of good a? Demand shifts down e. If average total costs are minimized and fixed costs are zero, then are the average variable costs also minimized? Yes because when. no fired cost ATC =AVC