What is the effectof arise in income on thedemandfor a product?

Select one:

a.It will rise if the product is a normal product.

b.It will fall if the product is a normal product.

c.It will rise if the product is an inferior product.

d.It will fall in both cases of a normal or inferior product.

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What is true about theprice elasticity of demandforproducts such as sugar, salt and household electricity?

Select one:

a.It is relatively elastic.

b.It is perfectly inelastic.

c.It is perfectly elastic.

d.It is relatively inelastic.

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Under what circumstances will anincrease in supply have no effect on the price of a product.

Select one:

a.Graphically, if the demand curve is horizontal.

b.Graphically, if the demand curve is vertical.

c.If the demand decreases by the same amount.

d.Graphically, if the supply curve is downward-sloping.

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Which of the following statementsis trueabout rent controls?

Select one:

a.It encourages increased investment in apartments.

b.It leads to a more equitable distribution of apartments.

c.It leads to a shortage of apartments.

d.It can often cause a surplus of apartments.

e.It makes more apartments available for people.

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What is the effect on"price"of anincrease in demand?

(hint ... think LONG TERM impact on Price with NO change in Supply)

Select one:

a.It will be big if the demand curve is flat.

b.It will be big if the supply curve is flat.

c.It will be small if the supply curve is flat.

d.It will be small if the supply curve is steep.