micro exam past questions Flashcards
1
Q
june 2017:
2c) Estimates for the demand for black tea in the UK suggest that it is an inferior
good. This implies it has a negative… (a,b,c,d but give the answer)
A
income elasticity of demand
2
Q
june 2017:
3c) One effect of a subsidy is (a,b,c,d but give answer)
A
consumer surplus
3
Q
june 2017:
5b) Explain the difference between fixed costs and variable costs.
A
fixed costs don’t change with output but variable costs do
