If the demand of a good is inversely related to income, it must be
A. a bad good.
B. an inferior good.
C. an everyday product.
D. a normal good.
Answer: B
Economics
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Which of the following changes in disposable income would lead to the smallest increase in consumption?
a. a $20,000 increase in disposable income, if MPC equals 0.5 b. a $12,000 increase in disposable income, if MPC equals 0.75 c. a $15,000 increase in disposable income, if MPC equals 0.6 d. a $30,000 increase in disposable income, if MPC equals 0.25
Economics
Suppose the United Auto Workers union obtains a substantial wage increase for auto workers. How will this affect the market for automobiles?
Economics