Author Question: If a 10 percent increase in income results in an 8 percent increase in the quantity demanded of a ... (Read 232 times)

jjjetplane · **on:** Jun 29, 2018

If a 10 percent increase in income results in an 8 percent increase in the quantity demanded of a good, the income elasticity of demand equals ________ and the good is ________ good.

A) 0.80; an inferior
B) 1.2; a normal
C) 0.80; a normal
D) -1.2; an inferior

Question 2

A market structure in which one firm produces a good or service that has no close substitutes is called

A) perfect competition.
B) monopolistic competition.
C) oligopoly.
D) monopoly.