Inferior Good
What will be an ideal response?
A good for which, other things equal, an increase in income leads to a decrease in demand.
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Capital is
A) liquidity. B) interest. C) produced goods that can be used to produce future goods. D) non-existent in a socialist economy. E) all of the above.
Suppose we have an economy for which G = 1100, T = 800, S = 230, and I = 230. If I falls to 150, the economy's trade deficit
A) increases from 0 to 80. B) decreases from 300 to 220. C) decreases from 0 to -80. D) decreases from 70 to -10. E) increases from 0 to 70.
For any firm, price always equals
A. average revenue. B. marginal revenue. C. marginal cost. D. marginal profit.
Figure 4.3 illustrates the demand for tacos. Assume that tacos are normal goods. An increase in income would bring about a movement from:
A. point a to point b. B. point c to point b. C. D2 to D1. D. D0 to D1.