If the price of a good rises, then the equilibrium consumption of that good:
A. decreases if it is a normal good.
B. increases if it is an inferior good.
C. remains the same.
D. None of the statements is correct.
Answer: A
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Bud opened a flower shop. He rented a building for $9,000 a year. To buy equipment for the store, he withdrew $10,000 from his savings account, which earned an annual interest rate of 3 percent
During the first year of operation, Bud paid $4,000 for utilities and $12,000 to his suppliers. The store's total annual revenue was $55,000. The market value of the store's equipment at the end of the year was $8,000. If Bud had not started this business, he would have continued to work as an employee at another flower shop for $30,000 a year. During the first year of operation, Bud A) received an economic profit of $30,000. B) received an economic profit of $20,000. C) incurred an economic loss of $2,300 D) incurred an economic loss of $12,300
The output of U.S. citizens who work in Canada would be included in the
A) gross domestic product of Canada. B) gross national product of Canada. C) gross domestic product of the United States. D) gross national product of Canada and the gross national product of the United States.