An inferior good is one for which
A. demand increases as income increases.
B. the demand curve is vertical.
C. demand decreases as income increases.
D. the demand curve slopes up.
Answer: C
You might also like to view...
Which of the following expenditures is classified as a mandatory expenditure of the U.S. federal government?
A) federal employee salaries B) national defense C) Medicaid D) foreign aid
A tariff is the same as a quota
Indicate whether the statement is true or false
Declining-block quantity discrimination makes sense if
A) buyers of smaller quantities are more price sensitive than buyers of larger quantities. B) buyers of smaller quantities are less price sensitive than buyers of larger quantities. C) demand for the good is perfectly elastic. D) the lower price for larger quantities encourages all consumers to purchase the larger quantity.
When an economy experiences deflation, consumption will:
A. decrease, because people will want to wait for prices to drop before spending. B. increase, because people will want to wait for prices to drop before spending. C. decrease, because people will lose value in their savings. D. increase, because people will lose value in their savings.