Marginal utility theory predicts that an increase in income means that the consumption of
A) all goods will increase.
B) normal goods will increase and consumption of inferior goods will decrease.
C) inferior goods will increase and consumption of normal goods will decrease.
D) None of the above answers is correct.
B
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The aggregate demand curve shows the equilibrium output level at different price levels determined from the income-expenditures model
Indicate whether the statement is true or false
Refer to the scenario above. If the investor plans to invest a sum of $4,000, which of the following statements is true?
A) All three investment options are equally profitable. B) Options A and B are profitable investment options, whereas Option C is not. C) Options A and C are profitable investment options, whereas Option B is not. D) Options B and C are profitable investment options, whereas Option A is not.