Good A is a Giffen good. If the price of good A were to suddenly double, the income effect would cause the purchases of good A to increase by
A) more than double.
B) exactly double.
C) less than double.
D) Any of the above are possible.
E) none of the above
D
You might also like to view...
Most changes in the money supply are the consequence of a change in the required reserve ratio
a. True b. False
Which of the following factors help to explain the sustained increases in health care spending in the United States, and which do not?
a. the additional paperwork, duplication, and waste generated in the U.S. health care system compared to systems in other countries b. the increasing costs of malpractice insurance and malpractice lawsuit settlements c. the number of uninsured patients receiving hospital treatment that could have been performed at a lower cost in doctors' offices d. the slow growth in labor productivity in health care compared to that in the economy as a whole e. the aging population f. increases in the cost of providing health care