Income elasticity of demand measures how responsive quantity demanded is to changes in income. how responsive price is to changes in quantity demanded. how responsive quantity demanded is to changes in price. how responsive income is to changes in education levels. For the next part, suppose the income elasticity of demand for butter is 0.03 . That means butter is a complementary good. a substitute good. a normal good. an inferior good. a luxury good.

What do economists mean when they use the latin expression ceteris paribus?

Which statement best explains the relationship between points a and b? a. consumption reaches its highest point, and then supply begins to fall. b. inflation reaches its highest point, and then the economy begins to expand. c. production reaches its highest point, and then the economy begins to contract. d. unemployment reaches its highest point, and then inflation begins to decrease.

On coral island in 2012, the labor force is 12,000, the unemployment rate is 10 percent, and the labor force participation rate is 60 percent. during 2013, 200 unemployed people found jobs and the working-age population increased by 1,000. the total number of people in the labor force did not change. the working-age population at the end of 2013 was the unemployment rate at the end of 2013 was round up to the second decimal. the labor force participation rate at the end of 2013 was round up to the second decimal.