Steak is a normal good. A decrease in the price of steak
a. causes the budget line to rotate inward
b. makes the supply of steak more elastic
c. decreases consumers' purchasing power
d. makes consumers poorer
e. increases consumers' purchasing power
E
You might also like to view...
Given that Tamar is a risk-averse person, she might accept a bet with a 50 percent chance of losing $100 today if she had a 50 percent
a. chance of winning $120 in two years and the interest rate was 11%. b. chance of winning $114 in two years and the interest rate was 7%. c. chance of winning $110 in two years and the interest rate was 3%. d. None of the above are correct; a risk averse person would not accept any of the above bets.
If a country is net exporter, free trade will hurt the ________.
A. poor citizens of the country B. domestic producers C. domestic consumers D. rich citizens of the country