Refer to the information provided in Figure 3.5 below to answer the question(s) that follow.
Figure 3.5Refer to Figure 3.5. If consumer income increases, the demand for chili peppers shifts from D0 to D1. This implies that chili peppers are a(n)
A. inferior good.
B. substitute good.
C. complementary good.
D. normal good.
Answer: A
You might also like to view...
Raising taxes and cutting spending are examples of ________
A) fiscal policy tightening B) fiscal policy expansion C) monetary policy tightening D) monetary policy expansion E) none of the above
Which of the following events could decrease the demand for labor?
a. An increase in the number of migrant workers b. An increase in the marginal productivity of workers c. A decrease in demand for the final product produced by labor d. A decrease in the supply of labor
How are the coordination problem and timing problem of monetary policy similar?
a. Both deal with a lack of control over certain factors. b. Both deal with foreign financial entities. c. Both focus on fiscal and monetary interactions. d. Both focus on nonbank institutions.
An increase in production costs is most likely to shift the ________.
A. aggregate demand curve to the right B. aggregate demand curve to the left C. short-run aggregate supply curve to the left D. short-run aggregate supply curve to the right