What do products such as movies, tomatoes and restaurant meals have in common?Multiple ChoiceThey are all inferior goods.They all are likely to have incomes elasticities less than one.The demand for all three goods is price elastic.The demand for all three goods is price inelastic.They all have a small number of substitute goods.

What do products such as household electricity, tobacco and toothpicks have in common?Multiple ChoiceThey are all inferior goods.They all are likely to have incomes elasticities greater than one.The demand for all three goods is elastic.The demand for all three goods is inelastic.They all have a large number of substitute goods.

What type of goods have a price elasticity of demand that is inelastic?Luxury goods.Necessities.Substitute goods.Complementary goods

Assume that a 3% increase in income across the economy produces a 1% decrease in the quantity of fast food demanded. The income elasticity of demand for fast food is ____________, and therefore fast food is _______________Multiple Choicenegative; an inferior good.negative; a normal good.positive; an inferior good.positive; a normal good.

For which product is the income elasticity of demand most likely to be positive?Multiple Choicerethreaded tirescabbageused clothingcomputers

Identify the item most likely to be a luxury good among the four mystery itemsmultiple choiceItem A: price elasticity of demand = −2.3Item B: price elasticity of demand = −1.0Item C: price elasticity of demand = −0.8Item D: price elasticity of demand = −0.2