Author Question: Income elasticity of demand is expected to be _____. a. relatively high for necessities b. ... (Read 86 times)

ishan · **on:** Jun 30, 2018

Income elasticity of demand is expected to be _____.
a. relatively high for necessities
b. positive for most products
c. relatively low for luxuries
d. negative for most products
e. zero for most products

Question 2

Ray Tucker has run his company, Tucker's Towing and Wrecking, for two years and has made an accounting profit of 34,000 each year. As long as Tucker's Towing continues to make accounting profits, it is rational for it to remain in the towing business.
a. True
b. False
Indicate whether the statement is true or false