The income effect of a decrease in the price of legal services, a normal good, results in
A) an increase in the demand for legal services.
B) an increase in the quantity of legal services demanded.
C) a decrease in the demand for legal services.
D) a decrease in the quantity of legal services demanded.
B
You might also like to view...
Which of the following is most likely to be an example of causation?
A) A student wins money by scratching a ticket with a particular coin. He decides to scratch all tickets with the same coin in the future. B) A soccer player scores 4 goals when he wears red socks. He concludes that the red socks helped him score the goals. C) A firm producing CFLs installs new machinery. The per-day production of CFLs increases. D) The crime rate is high in a country. The literacy rate is high as well.
On October 6, 1979, the Federal Reserve abandoned the strategy of targeting the Federal funds rate and focused on target ranges for growth in the monetary aggregates. Since that time, the Federal Reserve
a. has never deviated from that strategy. b. gave up on interest rate targeting. c. deviated from target ranges for growth in the monetary aggregates when inflation and unemployment were high. d. None of the above
The higher the transaction cost of an exchange, the lower the probability of the exchange taking place between the buyer and the seller
Indicate whether the statement is true or false
If the marginal tax rate is too high, it can cause all of the following except
A. Government tax receipts to decline. B. Work effort to decrease. C. Businesses to produce more. D. The rate of saving to decline.