1
answer
0
watching
154
views
4 Aug 2018
1. Some studies showed cocaine is an inferior good. If income were to rise, ceteris paribus, the equilibrium price of cocaine would
a. rise.
b. fall.
c. remain unchanged.
d. a or c.
e. b or c.
2. Which of the following statements is false?
a. In a competitive market, if the prevailing price exceeds equilibrium price, there is a tendency for the price to fall.
b. The slope of a market demand curve equals the price elasticity of the demand curve.
c. The cross-price elasticity of demand for two complements is negative.
d. An increase in an individualâs income without changing relative prices will shift the budget constraint outward (i.e., rightward) in a parallel way.
1. Some studies showed cocaine is an inferior good. If income were to rise, ceteris paribus, the equilibrium price of cocaine would
a. rise.
b. fall.
c. remain unchanged.
d. a or c.
e. b or c.
2. Which of the following statements is false?
a. In a competitive market, if the prevailing price exceeds equilibrium price, there is a tendency for the price to fall.
b. The slope of a market demand curve equals the price elasticity of the demand curve.
c. The cross-price elasticity of demand for two complements is negative.
d. An increase in an individualâs income without changing relative prices will shift the budget constraint outward (i.e., rightward) in a parallel way.
Hubert KochLv2
7 Aug 2018
