Author Question: Because Product X has a very small, positive income elasticity of demand, it is likely that product ... (Read 100 times)

tuffie · **on:** Jun 29, 2018

Because Product X has a very small, positive income elasticity of demand, it is likely that product X is a

A) luxury.
B) necessity.
C) product with many good substitutes.
D) product with many good complements.

Question 2

The above figure shows the market for blouses. The government decides to impose the sales tax on sellers, as shown in the figure. How much producer surplus is lost?

A) 10,000
B) 20,000
C) 25,000
D) 40,000