Suppose that frozen dinners were once a normal good for John, but now frozen dinners are an inferior good for him. John's demand curve for frozen dinners
A) has become steeper as a result.
B) has become flatter as a result.
C) has not changed as a result.
D) has disappeared as a result.
A
You might also like to view...
In the above figure, Sheryl's monthly budget line for movies and plays shifted, as shown. The shift in the budget line is parallel, so the shift might be because
A) the price of a movie fell and nothing else changed. B) the price of a play fell and nothing else changed. C) Sheryl's income decreased and nothing else changed. D) Sheryl's income increased and nothing else changed.
When consumers' incomes decline during a recession, they increase their consumption of instant coffee and reduce their consumption of other beverages. Therefore, instant coffee:
A. has an income elasticity of demand greater than zero but less than one. B. is normal. C. has a negative income elasticity of demand. D. is a necessity because consumers buy more during a recession.
The optimal method of production is the one that
A. minimizes cost. B. maximizes output regardless of cost. C. minimizes the normal rate of return. D. maximizes inputs.
The biggest problem with the Sherman Antitrust Act of 1890 was that it was unclear what
A. "substantially lessen competition" meant. B. specific acts were to be considered "restraints of trade." C. "price discrimination" was. D. "tying contracts" were.