A normal good is one for which
A) demand increases as income increases.
B) demand increases as income decreases.
C) the demand curve is horizontal.
D) demand increases as the price of a substitute increases.
Answer: A
You might also like to view...
Suppose Maria can make 12 pizzas or 4 lasagnas every Saturday afternoon, while Gina can make 10 pizzas or 2 lasagnas every Saturday afternoon. Which statement is true?
A) Maria is the most efficient producer of both pizza and lasagna. B) Gina is the least efficient producer of both pizza and lasagna. C) It costs Maria 3 pizzas to produce 1 lasagna. D) It costs Gina 5 lasagnas to produce 1 pizza. E) All of the above are true.
Refer to the figure above. What is the equilibrium price and quantity of the good?
A) Equilibrium price = $40, equilibrium quantity = 20 units B) Equilibrium price = $60, equilibrium quantity = 10 units C) Equilibrium price = $60, equilibrium quantity = 20 units D) Equilibrium price = $80, equilibrium quantity = 30 units