Figure 3.4 illustrates the demand for tacos. Assume that tacos are inferior goods. An increase in income would bring about a movement from:
A. point a to point b.
B. point c to point b.
C. D2 to D1.
D. D0 to D1.
Answer: C
You might also like to view...
Which of the following is NOT a device to reduce transaction costs?
A) shopping centers B) auto dealers located close together C) government prohibitions on advertising D) banks that direct funds from savers to borrowers
What are the two critically important functions for corporate financing performed by stock exchanges?
What will be an ideal response?
Budget cuts which lead to more lax protection of our borders will affect the labor market in California. It will cause a(n) ________ in labor supply, resulting in ________.
A. increase; higher wages B. decrease; higher wages C. decrease; lower wages D. increase; lower wages
Gage sells lumber to the archery industry, and he has to haul it to his buyers on his flatbed truck. His contract states that if the price of fuel for his truck increases his overall costs by a certain percentage, the price he gets for his lumber will automatically increase by the same percentage. This is an example of ______.
a. disinflation b. stagflation c. indexing d. anchoring