Explanation:
Normal goods are the whose demand decreases with increase in price whereas in economics inferior goods are those whose demand decreases with increase in people's income.
Normal goods have a positive income elasticity of demand; as incomes rise, more goods are demanded at each price level.Inferior goods have a negative income elasticity of demand; as consumers' income rises, they buy fewer inferior goods.
Answer:
d. $16.
Explanation:
The computation of the total monthly access fee is shown below:
Given that
p = 5 - 0.5q
Constant Marginal cost = 1
Based on the above information,
As we know that
In case of the two-part pricing, the monopolist is equal to the hourly rate
i.e (p) = MC
5 - 0.5q = 1
0.5q = 4
So, q = 8
And,
p = MC = $1
Moreover,
Total monthly access fees equal the whole consumer surplus
As per the demand function,
when q = 0 and p = $5
So,
Monthly Access fee is
= (0.5) × ($5 - 1) x 8
= 4 × $4
= $16
Answer:I dont get what your asking
Explanation:
Though I have no experience in business, I would say it is True.
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