Question
DONT EXPLAIN, JUST TYPE LETTER ONLY, PLEASE CORRECT ANSWER Which of the following goods is an inferior good? a. Bananas, with an income elasticity of
DONT EXPLAIN, JUST TYPE LETTER ONLY, PLEASE CORRECT ANSWER
Which of the following goods is an inferior good?
a.
Bananas, with an income elasticity of -1.20
b.
Watermelon, with a cross-price elasticity of -1.20
c.
Radishes, with a demand elasticity of 0.05
d.
Cucumbers, with an income elasticity of 0.05
All else equal, an elastic straight-line demand curve will be drawn as a demand curve that is:
a.
steep, because this would be the bottom of the demand curve.
b.
flat, because this would be the top of the demand curve.
c.
steep, because elasticity is the same as slope.
d.
flat, because elasticity is the same as slope.
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