Energy drinks and granola bars are normal goods. When the price of energy drinks decreases, the income effect causes a
a. shift to a lower indifference curve, and the consumer buys fewer granola bars.
b. shift to a higher indifference curve, and the consumer buys more granola bars.
c. movement along the indifference curve, and the consumer buys fewer granola bars.
d. movement along the indifference curve, and the consumer buys more granola bars.
b
You might also like to view...
The growth rates of capital, workforce skills and technology are higher in rich countries
a. True b. False Indicate whether the statement is true or false
The resources that a taxpayer devotes to complying with the tax laws are a type of
a. marginal tax. b. administrative burden. c. deadweight loss. d. Both b and c are correct.
If the money supply is $250 billion and nominal GDP is $1 trillion, the velocity of money is:
A. 0.25. B. 0.40. C. 2.50. D. 4.00.
How much is the MPS?
