31) If goods are complements, for sure their
a) Cross price elasticities are positive. b) Cross price elasticities are negative. c) Cross price elasticities are zero.
d) Income elasticity is negative
e) Income elasticity is positive.
32) Demand is perfectly inelastic when
a) The good in questions has perfect substitutes
b) Shifts in the supple curve results in no change in price.
c) Shifts in the supply curve results in no change in quantity demanded.
d) Shifts in the supply curve results in no change in the total revenues
e) An upward shift in the supply curve results in a decrease in the total revenues
33) The income elasticity of demand is high for
a) shelter
b) luxuries
o) clothing
d) food
e) inferior goods
34) To say that turnips are necessity goods means that the income elasticity.
a) is definitely greater than 1.
b) is negative.
c) is greater than O but less than 1.
d) is equal to 1.
e) is equal to 0.