Becky received a raise at work. She now substitutes Kraft Macaroni and Cheese for generic macaroni and cheese. Kraft Macaroni and Cheese is an example of:
a. Inferior Good
b. Market Good
c. Normal Good
d. Brand Good
c
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Which of the following statements is true?
A) If both demand and supply increase, there must be an increase in equilibrium price; equilibrium quantity may either increase or decrease. B) A decrease in demand causes equilibrium price to fall; the decrease in price then results in a decrease in quantity supplied. C) A decrease in demand causes a decrease in equilibrium price; the decrease in price causes supply to decrease. D) If demand decreases and supply increases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater.
In the above table, the marginal propensity to save when disposable income changes from $1,000 to $2,000 is
A) 0.1. B) 0.2. C) 0.8. D) -0.2.