Consider the market for high-end wine. Statistics show that wealthier families spend a greater proportion of their income on high-end wine than do poorer families. If households' incomes rise substantially during an economic recovery, then we can expect
a. an increased demand for high-end wine.
b. an increased supply of high-end wine.
c. a lower price for high-end wine.
d. the demand curve for high-end wine to shift to the left.
a. an increased demand for high-end wine.
You might also like to view...
Suppose Sue's buys a good for $60 on eBay. If the consumer surplus from the sale is $25, Sue would have been willing to pay:
a. $35 b. $25. c. $60 d. $85.
An individual is induced to change his/her occupation if:
a. the sunk cost of the current occupation is high. b. the expected net gains from the alternative occupation is negative. c. the outlook for future income, in the current occupation, increases. d. he/she has devoted a lot of money, time and effort in the current occupation. e. the marginal cost of remaining in the current occupation is very high.