When Stanley has an income of $1,000 . he consumes 30 units of good A and 50 units of good B. After Stanley's income increases to $1,500, he consumes 60 units of good A and 45 units of good B. Which of the following statements is correct?
a. Both goods A and B are normal goods.
b. Both goods A and B are inferior goods.
c. Good A is a normal good, and good B is an inferior good.
d. Good A is an inferior good, and good B is a normal good.
c
You might also like to view...
Under a fixed-rate unified currency regime, each country belonging to the system
a. may pursue an independent monetary policy. b. gives up its monetary policy independence to one central bank with the power to expand and contract the money supply. c. is committed to conducting highly expansionary monetary policy in order to maintain the convertibility of its currency. d. must fix its domestic interest rates in order to maintain the convertibility of its currency.
If business inventory changes are negative, it means that they were not intended
Indicate whether the statement is true or false
For most welfare recipients, the negative income tax plan would increase incentives to work.
Answer the following statement true (T) or false (F)
If the wage rate were $45, how many workers would be hired?
