In economics, the concept that individuals are motivated by self-interest and respond predictably to opportunities is known as

In the market for a normal good, what is the ultimate market reaction of suppliers to an increase in the incomes of consumers?

A) Suppliers do not react, because a change in income shifts the demand curve, not the supply curve. B) The supply curve shifts to the right. C) The supply curve shifts to the left. D) Quantity supplied increases as the equilibrium moves along the supply curve due to a rise in the demand.

Risk aversion is best explained by

a. timidity. b. increasing marginal utility of income. c. constant marginal utility of income. d. decreasing marginal utility of income.