Bus Rides and Canned Soup Are Inferior Goods, So the ________

question 385

Multiple Choice

Bus rides and canned soup are inferior goods, so the ________ elasticity of demand is ________.

• A) cross; positive
• B) income; positive
• C) income; negative
• D) cross; negative

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Definitions:

Herfindahl Index

A measure of market concentration that squares and sums the market share percentages of all firms within an industry.

Four-Firm Concentration Ratio

The four-firm concentration ratio is a measure used to assess the competitiveness of a market by calculating the combined market share of the four largest firms within an industry.

Herfindahl Index

A measure of the size of firms in relation to the industry and an indicator of the competition level among them.

Dominant Strategy

In a strategic interaction (game) between two or more players, a course of action (strategy) that a player will wish to undertake no matter what the other players choose to do.