In the above figure, as Brendan's income rises his consumption bundle moves from point A to point B. This implies that for Brendan, compact discs are ________ good and haircuts are ________ good
A) a normal; an inferior
B) a normal; a normal
C) an inferior; an inferior
D) an inferior; a normal
A
You might also like to view...
When the value of the dollar changes from £0.75 to £0.5, then the British pound has ________ and the U.S. dollar has ________
A) appreciated; appreciated B) depreciated; appreciated C) appreciated; depreciated D) depreciated; depreciated
A consumer maximizes utility when she consumes at a point where a. the marginal utility of each good is the same
b. the marginal utility per dollar spent on each good is the same. c. the price of each good is the same. d. All of the above statements are true.
When an increase in government purchases causes firms to purchase additional plant and equipment, we have seen a demonstration of
A. the multiplier effect. B. supply-side economics. C. the crowding-out effect. D. the investment accelerator. E. none of these answers.
In which case will the price change be the greatest (assuming the shifts described are the same size)?
A. Supply is perfectly elastic, and demand shifts to the left. B. Demand is elastic, and supply shifts to the left. C. Supply is elastic, and demand shifts to the left. D. Demand is inelastic, and supply shifts to the left.