Last Year,Keith Purchased 20 Pounds of Beef When His Income

question 121

Multiple Choice

Last year,Keith purchased 20 pounds of beef when his income was $30,000.This year his income is $40,000 and he purchased 40 pounds of beef.Which of the following statements is true?

• A)Keith's demand for beef is price inelastic.
• B)Beef and income are substitutes.
• C)Keith's demand for beef is price elastic.
• D)Beef is a normal good.
• E)None of the other answers is true.

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Definitions:

Celler-Kefauver Act

A U.S. law passed in 1950 to amend the Clayton Act, aimed at preventing anticompetitive mergers and acquisitions by closing loopholes regarding asset purchases.

Interlocking Directorates

The practice of having the same individuals serve on the boards of directors of multiple companies, potentially influencing competitive practices.

Sherman Act

A landmark federal statute in the field of United States antitrust law passed in 1890 to preserve free and unfettered competition as the rule of trade.

U.S. Justice Department

The federal executive department responsible for enforcing the laws of the United States and administering justice.