If the income-consumption path slopes down, then:
A. both goods are inferior.
B. both goods are normal.
C. one good is normal and the other good is inferior.
D. we can't tell anything about whether the goods are normal or inferior.
C. one good is normal and the other good is inferior.
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Write down a model that will allow you to analyze the BOP and exchange rate in a monetary framework. Then, discuss the consequences of an increase in the foreign inflation rate under fixed, flexible, and managed floating systems
What will be an ideal response?
The market demand curve is derived by:
a. studying an individual's demand for a product over a year. b. comparing the monthly consumption of a group of people. c. surveying a set of consumers and ascertaining their preferences. d. adding up the quantities that consumers in a market are willing and able to purchase at each price. e. calculating the average price a random sample of consumers are willing to pay for a product.