Last year, Alice bought 40 CDs when her income was 20,000 . This ...

[cmoore54]

Last year, Alice bought 40 CDs when her income was 20,000 . This year, her income increased to 25,000 . and she purchased 48 CDs. We can conclude that:
 a. Alice's price elasticity of demand for CDs is equal to 1.
  b. Alice's demand for CDs is price-inelastic.
  c. Alice's demand for CDs is price-elastic.
  d. the income elasticity of demand for CDs is negative.
  e. CDs are a normal good.

Question 2

An economic profit of zero indicates a satisfactory situation for the firm.
 a. True
  b. False
  Indicate whether the statement is true or false

[dreamfighter72]

Answer to Question 1

e

Answer to Question 2

True

[cmoore54]

TYSM

[blakcmamba]

Excellent