A product can be classified to be an inferior good if an increase in the income of buyers causes

a. A decrease in quantity demanded
b. A decrease in demand
c. An increase in demand
d. An increase in quantity demanded.


a

Economics

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Recent tests suggest that the Leontief Paradox has been completely resolved

Indicate whether the statement is true or false

Economics

The idea that inflation by itself reduces people's purchasing power is called

a. the inflation tax. b. menu costs. c. the inflation fallacy. d. shoeleather costs.

Economics

When the price of a product falls, the income effect induces the consumer to purchase more of it while the substitution effect prompts her to buy less.

a. true b. false

Economics

Due to the distortionary effects of inflation, capital investment may be reduced due to higher price levels.

Answer the following statement true (T) or false (F)

Economics