If an increase in consumer incomes causes the demand curve for product Q to shift to the right, then it can be said that product Q is a(n):
a. Inferior good
b. Normal good
c. Luxury good
d. Inexpensive good
Ans: b. Normal good
You might also like to view...
According to the text, "congestion" is another word for
A) confusion. B) cost. C) inconsiderate behavior. D) shortage.
Which of the following is TRUE for a monopolistically competitive firm?
A) MR = P B) MR > P C) MR < P D) MR = AFC
If an oligopolistic firm in a game theory kind of market cuts price, in the long run
a. the other firms will follow and all firms will be worse off b. the price cutter will be worse off if other firms don't cut price as well because revenue equals price times output and since price was cut, its revenue must be less c. its market share and profit will increase at the expense of its rivals d. the other firms will follow and all firms will be better off because at lower prices, industry sales will increase e. it will become a monopoly, having outsmarted its rivals, and will be able to raise the price again. That's how the game is played.
Which of the following is a common result of rent controls?
a. Tenants often move from one rent-controlled apartment to another. b. The upgrades for rent-control apartments increase. c. New housing incentives are reduced. d. Landlords increase their profits.