Alan purchases 10 percent fewer bags of chips when his income decreases by 5 percent. Based on only this information, we know that for Alan
A) chips are a normal good.
B) chips are a complement to salsa.
C) chips are a substitute for pretzels.
D) chips are an inferior good.
E) the price of chips fell.
A
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Suppose that there is an increase in disposable income and simultaneously an increase in the expected profitability of investment. As a result, the equilibrium real interest rate ________ and the equilibrium quantity of loanable funds ________
A) remains unchanged; increases B) rises; increases C) might rise, fall, or remain unchanged; increases D) falls; increases E) might rise, fall, or remain unchanged; decreases
Control of monetary policy rests with
A) Congress. B) the President. C) the Federal Reserve. D) the Comptroller of the Currency. E) the U.S. Treasury.
Mortgage
What will be an ideal response?
The barrier to entry protecting cable companies is primarily
A. ownership of a scarce factor of production. B. network effects. C. economies of scale. D. patents.