If the incomes of New Englanders increased and they demanded more tobacco, then tobacco would be:
a. a normal good.
b. an inferior good.
c. a substitute good.
d. a complementary good.
a. a normal good.
You might also like to view...
For the federal deficit to be lowered,
A) the federal government must decrease its spending and increase net exports. B) the federal government's expenditures must be lower than its tax revenue. C) the Federal Reserve must reduce the money supply. D) the Federal Reserve must raise interest rates and lower the required reserve ratio.
The producer price index is considered a good predictor of future consumer prices because increases in input prices:
A. eventually make it to consumers when they buy the final product. B. are accounted for in PPI, and therefore this automatically adjusts the CPI. C. are observed first in the PPI, adjusting the CPI downward. D. are used by consumers to make decisions on what to buy.
The Consumer Price Index is used specifically to measure the
A. Inflation rate. B. Business cycle. C. Growth rate of the economy. D. Unemployment rate.
Suppose the price of beef fell dramatically as the price of feed grain decreased. Use the income effect and the substitution effect to explain why there was an increase in the quantity of beef purchased
Please provide the best answer for the statement.