Suppose Spam is an inferior good. If the U.S. economy is growing strong, and demanders' incomes were to rise, which of the following would tend to occur?
A) Spam sales would increase.
B) Spam demand would decrease.
C) The price of Spam would increase.
D) Both A and C above.
E) Both B and C above.
B
You might also like to view...
If the United States changed its laws to allow for the legal sale of a kidney, which of the following is likely to occur?
a. The price of kidneys would rise to balance supply and demand. b. The gains from trade would make both buyers and sellers better off. c. Thousands of lives would be saved. d. All of the above are correct.
In the short run, a tax placed on a perfectly competitive industry should
A. always increase the price. B. increase the total amount of the good sold. C. not affect the total amount of the good sold. D. decrease the total amount of the good sold.
If Ana devotes all her time to making fudge, she can make 3 pounds of fudge an hour, and if she devotes all her time to making toffee, she can make 2 pounds of toffee an hour. If Leo devotes all his time to making fudge, he can make 4 pounds of fudge an hour, and if he devotes all his time to making toffee, he can make 5 pounds of toffee an hour. What is Leo's opportunity cost of making a pound of fudge?
A. 0.8 of a pound of toffee B. 4 pounds of toffee C. 5 pounds of toffee D. 1.25 pounds of toffee
A government-inhibited good is often
A) produced by the government. B) subsidized. C) taxed. D) advertised.