Normal goods are those for which demand decreases as

A) the price of a complement falls.
B) the price of a substitute falls.
C) income decreases.
D) the good's own price rises.


C

Economics

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Optimization in levels calculates:

A) only the costs of an alternative and not the benefits. B) the total net benefits of different alternatives. C) the change in net benefits resulting from a shift from one alternative to another. D) only the benefits of an alternative and not the costs.

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Most people buy insurance because they

a. are risk lovers b. enjoy the gamble c. are risk neutral d. are risk averse

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The U.S. was the world's leading net creditor nation until

A. 1971. B. 1973. C. 1982. D. 1990.

Economics