If your income rises by 25 percent and, as a result, you buy fewer packages of Ramen Noodles, then Ramen Noodles are a(n)
A) substitute.
B) normal good.
C) complement.
D) inferior good.
D
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Basic supply and demand analysis indicates that having firms rather than the government provide health insurance to workers
A) changes neither the composition of the compensation that firms pay nor its level. B) changes both the composition of the compensation that firms pay and its level. C) changes the composition of the compensation that firms pay, but does not change its level. D) does not change the composition of the compensation that firms pay, but does change its level.
Which of the following would force a monopoly to charge a lower price?
A) A new firm selling the same enters the market. B) A new firm selling the same product locates close to the monopoly. C) A new firm introduces a better substitute for the firm's product. D) All of the above.