If beans are inferior goods, a decrease in income will
A. cause beans to sell at a lower price.
B. increase the production of beans.
C. shift the demand curve for beans to the left.
D. shift the demand curve for beans to the right.
D. shift the demand curve for beans to the right.
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Describe the changes in the variables that will cause the demand for a product to increase, shifting the demand curve to the right
What will be an ideal response?
During the first half of the 2000s, the price of pork rose. After that, within a couple of years the price fell back to about the level before the initial increase. What might have led to these events?
What will be an ideal response?
If John purchases 10 percent more compact discs when his income increases 5 percent, then:
a. his total expenditure on compact discs will fall as his income increases. b. compact discs would be classified as an inferior good. c. compact discs would be price elastic. d. compact discs would be income inelastic. e. compact discs would be income elastic.
At the equilibrium real interest rate in the open-economy macroeconomic model, the amount that people want to save equals the desired quantity of
a. net capital outflow. b. domestic investment. c. net capital outflow plus domestic investment. d. foreign currency supplied.