Which of the following statements represents a correct and sequentially accurate economic explanation?
A) Good X is an inferior good and good Y is a substitute for X. Income rises, the demand for X falls, the price of X falls, and the demand for Y rises.
B) Good X is an inferior good and good Y is a substitute for X. Income rises, the demand for X falls, the price of X falls, and the demand for Y falls.
C) Good X is an inferior good and good Y is a substitute for X. Income falls, the demand for X rises, the price of X rises, and the demand for Y falls.
D) Good X is an inferior good and good Y is a substitute for X. Income rises, the quantity demanded of X rises, the price of X rises, and the demand for Y falls.
E) none of the above
B
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On what kind of income is our tax system based?
A) nominal B) adjusted C) real D) inflationary
The case of New Zealand, described in the text, is concerned with the country's
A) prospects for long term growth. B) ability to sustain current account deficits. C) unproductive industrial sector and its prospects for long run growth. D) labor productivity. E) exchange rate volatility relative to other currencies.
According to the Keynesian view, the prolonged unemployment of the Great Depression:
a. was surprising because Keynesians believed that wage rates would decline and direct the economy to full employment. b. was surprising because Keynesians believed that lower interest rates would direct the economy to full employment. c. resulted because the total expenditures on goods and services were less than the full-employment rate of output. d. resulted because the federal government ran large budget deficits during the 1930s.
Suppose Katie, Kendra, and Kristen each purchase a particular type of cell phone at a price of $80 . Katie's willingness to pay was $100, Kendra's willingness to pay was $95, and Kristen's willingness to pay was $80 . Which of the following statements is correct?
a. For the three individuals together, consumer surplus amounts to $35. b. Having bought the cell phone, Kristen is better off than she would have been had she not bought it. c. Had the price of the cell phone been $95 rather than $80, Katie and Kendra definitely would have been buyers and Kristen definitely would not have been a buyer. d. The fact that all three individuals paid $80 for the same type of cell phone indicates that each one placed the same value on that cell phone.