Question: If an increase in income leads to a decrease in demand, the good is a. a complement. b. a substitute. c. inferior. d. abnormal. e.

If an increase in income leads to a decrease in demand, the good is

a. a complement.

b. a substitute.

c. inferior.

d. abnormal.

e. normal.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Macroeconomic Theory Questions!

Q:

3. If an increase in income leads to a decrease in demand, the good is a. a complement. b. a substitute. c. inferior. d. abnormal. e. normal.

Q:

If an increase in income leads to a decrease in demand, the good is a. a complement. b. a substitute. c. inferior. d. abnormal. e. normal.

Q:

3. If an increase in income leads to a decrease in demand, the good is a. a complement. b. a substitute. c. inferior. d. abnormal. e. normal.

Q:

Answer the questions clearly. Make sure you solve all of them correctly with the right answer. No cursive please. 9:28 AM Mon Oct 12 + 20.2 +5I .)) 8. The elasticity of demand for a product is likely...

Q:

QUESTION 19 points Save Answer Two goods for which an increase in the price of one leads to an increase in the demand for the other, are called Substitutes Complements Inferior goods Normal goods...

Q:

An inferior good is defined as: ( a ) A good for which, other things equal, an increase in income leads to a decrease in demand. ( b ) A good for which, other things equal, an increase in income...

Q:

Here is a demand function: Q =1 5 1llP _ [In the answer sheet circle your choice for its marginal revenue (MR) function. a. MR=2.4Q b. MR=3.5Q E. MR=1.167Q c. MR=1.5.2Q (1. MR =1.333Q f. RIR=1.S.333Q...

Q:

1i2?t2020 Venezuela Faces Shortages in Grocery Staples The New York Times 5hr .'Xu ork Elam; l'Vi'th Venezuelan Food Shortages, Some Blame Price Controls By William Noun-tart April 20. 201.2 CARACAS,...

Q:

Tell if the following are true or false, If false tell why (a) For a normal good, the income effect reinforces the substitution effect, so the demand curve slopes downward. For an inferior good, the...

Q:

If good A is an inferior good, an increase in income leads toMultiple Choice 0 1 : 4 8 : 0 9 a decrease in the demand for good A . an increase in the demand for good A . a decrease in the demand for...

Q:

Abc inc manufactures widgets. the budgeted production is for 75,000 sets during the year. Each set requires 2.5 hours to polish the material. if polishing labor cost 15.00 per hour. Determine the...

Q:

Gravina Company is planning to spend $6,000 for a machine that it will depreciate on a straight-line basis over 10 years with no salvage value . The machine will generate additional cash revenues of...

Q:

What role of financial innovation in the evolution of financial markets and institutins how can companies adapt to these innovations to remain competitive in a dynamic financial environment

Q:

For laminar flow over an infinite parallel plate, we often assume boundary layer (BL) approximation. Under BL approximation, we often solve the Blasius equation to find the laminar boundary flow over...