In surveying their alumni, State U's economics department discovered that ramen noodle consumption declined once students graduated and found jobs. One conclusion the survey team might draw from this result is that:
A. ramen noodles are an inferior good.
B. there is excess demand for ramen noodles.
C. college graduates have a high reservation price for ramen noodles.
D. the equilibrium price for ramen noodles is too high.
Answer: A
Economics
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If the Fed increases the interest rate in the U.S.:
A) the demand curve for dollars will shift to the left. B) the demand curve for dollars will shift to the right. C) the supply curve of dollars will shift to the right. D) the real exchange rate of the U.S. will depreciate.
Economics
Which of the following is NOT a reason social returns might be greater than private returns?
A) Excess competition between firms B) Knowledge spillovers C) Spillovers from research and development D) Capital market imperfections
Economics