If a good is normal and income decreases, then
A. the supply curve will shift to the right.
B. the demand curve will shift to the right.
C. the supply curve will shift to the left.
D. the demand curve will shift to the left.
Answer: D
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An economy is considered a small open economy if it
A) is too small to affect the world real interest rate. B) has GDP less than 1% of world GDP. C) doesn't trade internationally. D) has a zero trade balance.
NAFTA is an example of a free trade area consisting of the United States, Canada, Mexico, and the European Community
Indicate whether the statement is true or false
If the price level last year was 180 and this year it is 176, then
a. there was inflation of 2.3 percent. b. there was inflation of 4.0 percent. c. there was deflation of 2.2 percent. d. there was deflation of 4.0 percent.
As more of a product is consumed, total utility increases until
A) marginal utility increases at an increasing rate. B) average utility increases at an increasing rate. C) marginal utility is negative. D) average utility decreases.