If a good is normal and its price increases,
a. the income effect will be positive and the substitution effect will be positive.
b. the income effect will be negative and the substitution effect will be negative.
c. the income effect will be positive and the substitution effect will be negative.
d. the income effect will be negative and the substitution effect will be positive.
b
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All points above a given indifference curve are
A) inferior to any point on the indifference curve. B) preferred to any point on the indifference curve. C) definitely not affordable. D) Both answers Band C are correct.
If by chance, the level of investment that producers intend to make equals what consumers actually save out of their income, it follows that what producers intend to produce for consumption is precisely what consumers intend to consume. This set of equalities is shown as
a. Ci = Y – Ii b. Ci = Y – S c. Y = C + S d. Ii = S e. I = Y
On a given linear demand curve, as price increases demand becomes:
A. more negative. B. more variable. C. more elastic. D. less elastic.
China has a ______ exchange rate with the United States, while Japan's exchange rate with the U.S. is determined by ____________.
Fill in the blank(s) with the appropriate word(s).