Suppose the price of good X increases and consumers purchase more of good Y. Which of the following statements is necessarily true about good Y?
a. Good Y is a normal good
b. Good Y is an inferior good, but not a Giffen good.
c. Good Y is an inferior good and a Giffen good.
d. Good Y could be a normal or inferior good.
d
You might also like to view...
Which of the following is not a question that macroeconomists address?
a. Why is average income high in some countries while it is low in others? b. Why does the price of oil rise when war erupts in the Middle East? c. Why do production and employment expand in some years and contract in others? d. Why do prices rise rapidly in some periods of time while they are more stable in other periods?
Figure 3-9
Given the demand (D) and supply (S) for gasoline in , if the price of gasoline were $1 per gallon,
a.
consumers would wish to purchase more than was being supplied.
b.
producers would be supplying more than consumers wished to purchase.
c.
the quantity consumers wished to purchase would equal the quantity that producers wished to supply.
d.
there would be a tendency for the price of gasoline to fall.
Assume that five oligopolists begin with a common price of p = $15. One of the firms raises its price to $18. What are the other four firms likely to do, based on the theory of the kinked demand curve?
A. Raise their prices also, but by less than $3 B. Raise their prices by $3 C. Keep their prices the same D. Lower their prices by less than $3
Without technological advancement, how can a nation achieve economic growth?
A) by producing more high-value goods and fewer low-value goods B) through an increase in supplies of factors of production C) by producing more low-value goods and fewer high-value goods D) by decreasing the size of the labor force