If X is a normal good, a rise in money income will shift the:
A. supply curve for X to the right.
B. demand curve for X to the left.
C. demand curve for X to the right.
D. supply curve for X to the left.
Answer: C
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If a perfectly competitive firm is maximizing its profit and is making an economic profit, which of the following is correct?
i. Price equals marginal revenue. ii. Marginal revenue equals marginal cost. iii. Price is greater than average total cost. A) i only B) i and ii only C) ii and iii only D) i and iii only E) i, ii, and iii
An increase in income produces a parallel, outward shift in the budget line.
Answer the following statement true (T) or false (F)
Output and inflation movements can arise from either demand or supply shifts. How can we tell them apart?
What will be an ideal response?
Which of the following could explain an increase in demand for labor?
a. additional training that increases the productivity of each unit of labor in this market b. an increase in the amount of risk associated with this job c. a decrease in the amount of risk associated with this job d. an improvement in the working conditions associated with this job e. a decline in the working conditions associated with this job