Suppose that when the price of ice cream increases, Liza decreases her purchase of hot fudge. To Liza,
A) ice cream and hot fudge and substitutes.
B) ice cream is a normal good and hot fudge is an inferior good.
C) ice cream and hot fudge are normal goods.
D) ice cream and hot fudge are complements.
D
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How much mobility has there been through the income quintiles since 2007?
What will be an ideal response?
To maintain a price below the equilibrium price,
a. demand must increase. b. supply must increase. c. the government must set a ceiling price. d. supply must decrease.
The consumption function shows
a. how fast the economy is consuming its capital. b. that the amount of national income determines the rate at which the economy consumes its resources. c. that households’ incomes determine how much the households will spend for consumer goods. d. the rate at which people actually use up their consumer goods.
Part of the appeal of gold as a medium of exchange is that it is indivisible
Indicate whether the statement is true or false