Refer to the above figure. The arrows show the direction of a shift in the demand curve of Good A. Which of the following would be the most likely reason for the shift in the demand curve if Good A is an inferior good?
A. an increase in consumers' income
B. a decrease in the price of Good A
C. an increase in the price of Good A
D. a decrease in consumers' income
Answer: D
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A boom is:
A. a period in which the economy is growing at a rate significantly below normal. B. the high point of economic activity prior to a downturn. C. a particularly strong and protracted expansion. D. a particularly severe and protracted recession.
Some economists believe that financing deficit spending by increasing taxes will lead to a lower level of national consumption and a higher level of national savings than deficit spending. The reason is
A) that people do not realize that taxes have increased also. B) the interest rate on the debt will increase. C) people will forgo private consumption now as society substitutes government goods for private goods. D) people believe that they can consume the government provided goods and have future generations pay the bill.
Let C = 300 + 0.9y and I = 125. The value of the multiplier is
A) 0.9. B) 9. C) 10. D) 27.
Refer to the demand and supply equations. At a price of $5, there will be ________
Fill in the blank(s) with correct word