A positive relationship exists between two variables if
A) one variable has positively no effect on the other variable.
B) a reduction in one variable is associated with an increase in the other variable.
C) a reduction in one variable is associated with a decrease in the other variable.
D) both variables are inflation-distorted.
Question 2
A rise in the price of a product lowers the total revenue from the product if the
A) income elasticity of demand exceeds 1.
B) good is an inferior product.
C) demand for the product is inelastic.
D) demand for the product is elastic.
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