Author Question: The income elasticity of demand for bicycles is +10, which implies that bicycles are A) an ... (Read 349 times)

Garrulous · **on:** Jun 29, 2018

The income elasticity of demand for bicycles is +10, which implies that bicycles are

A) an inferior good.
B) a normal good.
C) a substitute good for motorbikes.
D) a complement good for motorbikes.

Question 2

If the marginal social cost of a good equals the marginal private cost of the good, then the marginal external cost of the good

A) is zero.
B) equals the marginal social cost.
C) equals the marginal social benefit.
D) equals the marginal private benefit.