At Revolution Doughnuts in Fort Collins, Colorado, a cup of coffee or a doughnut is $1. Suppose Hannah loves going to Revolution Doughnuts and usually buys 2 doughnuts and 1 cup of coffee
On the way to the shop, Hannah finds an extra $2 dollars in change in her car and buys an extra doughnut and cup of coffee. This means A) doughnuts are an inferior good and coffee is a normal good for Hannah.
B) doughnuts are a normal good and coffee is an inferior good for Hannah.
C) doughnuts and coffee are normal goods for Hannah.
D) doughnuts and coffee are inferior goods for Hannah.
C
You might also like to view...
Two companies, Dirty Inc. and Filthy Inc., each of which has access to 5 different production processes, each of which has a different cost and produces a different amount of pollution. The daily costs of the processes and the number of tons of smoke emitted are shown in the table below.Process(smoke/day) A(4 tons/day) B(3 tons/day) C(2 tons/day) D(1 ton/day) E(0 tons/day) Cost to Dirty Inc. ($/day) $110$200$380$740$1,460 Cost to Filthy Inc. ($/day) $400$430$490$580 $700Suppose pollution is initially unregulated. If the City Council imposes a tax of $91 per day on each ton of smoke emitted, then total emissions will fall to ________ tons of smoke per day.
A. 1 B. 4 C. 2 D. 8
What factors lead to competitive advantage for a firm?
What will be an ideal response?
The demand curve facing a perfectly competitive firm is
A. downward sloping. B. perfectly inelastic. C. infinitely elastic. D. perfectly elastic.
_______________ are inputs or ingredients mixed together by a firm through its technology to produce output
Fill in the blank(s) with the appropriate word(s).