37.If income increases and more of a good is purchased, then: a.the good can be

Question

37.If income increases and more of a good is purchased, then:

a.the good can be described as being price inelastic

b.the good can be described as being price elastic

c.the good can be described as being income inelastic

d.the good can be described as being income elastic

38.The yankees baseball organization following its world series victory gas decided to increase ticket prices as a way of increasing revenue. Obviously the Yankee management believes that:

a.the demand for Yankee baseball tickets are elastic

b.the demand for Yankee baseball tickets are inelastic

c.the demand for Yankee baseball tickets is perfectly horizontal

d.the demand for Yankee baseball tickets are almost horizontal

Explanation / Answer

37. D.

Explanation: In case the demand for good increases with an increase in the income of the consumer, the good is said to be income elastic.

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