Hamburger is an inferior good. If the price of hamburger increases,
a. the income effect on the demand for hamburger will reinforce the substitution effect
b. the income effect on the supply of hamburger will reinforce the substitution effect
c. the budget line will rotate outward
d. the budget line will shift outwards
e. the income effect on the demand for hamburger will offset, to some degree, the substitution effect
E
You might also like to view...
Explain how rapid population growth can hinder labor productivity
What will be an ideal response?
Many economic variables are classified according to their relation to the business cycle. What are the principal categories? Variables in which category(ies) are of greatest help in forecasting changes in the economy?
What will be an ideal response?
Countries with a relatively high stock of skilled labor will have a comparative advantage in producing goods that require relatively larger quantities of skilled labor
a. True b. False Indicate whether the statement is true or false
What are some of the policy tools used by supply-side economists, and how do they work?
What will be an ideal response?