ECONOMICS 211 CLICKER QUESTIONS Chapter 5 –Set #3.

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ECONOMICS 211 CLICKER QUESTIONS Chapter 5 –Set #3

Total revenue when the price is P 2 is represented by the area(s) 1. B + D. 2. A + B. 3. C + D. 4. D.

Necessities such as food and clothing tend to have 1. high price elasticities of demand and high income elasticities of demand. 2. high price elasticities of demand and low income elasticities of demand. 3. low price elasticities of demand and high income elasticities of demand. 4. low price elasticities of demand and low income elasticities of demand.

Suppose good X has a negative income elasticity of demand. This implies that good X is 1. a normal good. 2. a necessity. 3. an inferior good. 4. a luxury.