Multiple Choice
Suppose that the income elasticity of demand for frozen dinners is negative. Other things being equal, which of the following statements is INCORRECT?
A) Frozen dinners are an inferior good.
B) The quantity demanded of frozen dinners increases as a consumer's income declines.
C) There exists a negative relationship between income and the demand for frozen dinners.
D) The share of income spent on good X must decrease as a consumer's income decreases.
Correct Answer:
Verified
Correct Answer:
Verified
Q212: The percentage change in the quantity of
Q213: If the number of highway deaths among
Q214: If a firm currently sells a product
Q215: If the demand for new cars is
Q216: If the demand for school ball caps
Q218: Draw the demand curve for a good
Q219: If the demand for a product decreases
Q220: If an increase in the price of
Q221: The market demand for school supplies is
Q222: If demand increases, the increase in price