If people buy less chewing gum at every price when their incomes fall, then:
a. chewing gum is a normal good.
b. the demand for chewing gum is positively sloped.
c. demand for chewing gum has increased.
d. the price of chewing gum has increased.
e. there has been a decrease in population that changed demand.
a
You might also like to view...
Suppose that the following table represents all of the possible investments in the economy. If the nominal interest rate is six percent, what is the total amount of investment in the economy? (Note: The Returns are for one period later.)
Investment Cost Returns A $100 $105 B 300 321 C 200 216 D 50 55 E 400 416
Who does NOT earn economic rent in a competitive factor market?
A) No one B) Everyone C) The last factor of production hired D) The inframarginal workers E) Only owners of physical properties earn economic rents