Refer to the above figure. The arrows show the direction of a shift in the demand curve of Good A. Which of the following would be the most likely reason for the shift in the demand curve if Good A is an inferior good?
A) an increase in the price of Good A
B) a decrease in the price of Good A
C) a decrease in consumers' income
D) an increase in consumers' income
C
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Which of the following will NOT shift an economy's production possibilities curve outward?
A. an increase in technology B. an improvement in the literacy rate C. a reduction in the unemployment rate D. an increase in the number of workers available
Why is it true that under monopolistic competition the price is above marginal revenue while under pure competition price is equal to marginal revenue?
What will be an ideal response?
Looking at the U.S. personal saving rate over the last sixty years, we can say that ________
A) it has always been low B) Americans used to spend a lot more than they have in recent years C) Americans used to save a lot more than they have in recent years D) it has always been fairly high E) Americans spend more when concerned about their future earnings
The largest source of unemployment is
A) re-entrants to the labour force. B) job losers. C) involuntary part-time workers. D) job leavers. E) entrants to the labour force.