A normal good is one:
A. whose amount demanded will decrease as its price decreases.
B. whose demand curve will shift leftward as incomes rise.
C. whose amount demanded will increase as its price decreases.
D. for which the consumption varies directly with incomes.
Answer: D
You might also like to view...
The most profitable output level can be found by looking at which two curves?
a. P and MR. b. MR and MC. c. MC and TC. d. P and AVC. e. AVC and ATC.
A company finds that at its present level of production, MR = MC at $14, MC = AVC at $15, and MC = ATC at $20. Your advice to the firm regarding its short-run operations is
A) to continue production, as it is earning an economic profit of $1 per unit. B) to continue production, as it is earning an economic profit of $6 per unit. C) to shut down. D) to continue production at a loss.