The income elasticity of demand _____. a. must be negative ...

[CQXA]

The income elasticity of demand _____.
 a. must be negative because of the law of diminishing marginal utility
  b. could be positive, negative or zero, depending on the nature of the good
  c. must be positive for all goods because consumers tend to buy more at higher incomes
  d. is usually zero because you can only have so much
  e. can never be zero

Question 2

One would expect to observe a diminishing marginal product of labor when crowded office space reduces the productivity of new workers.
 a. True
  b. False
  Indicate whether the statement is true or false

[Kdiggy]

Answer to Question 1

b

Answer to Question 2

True