Economists know that a particular good can be classified as an inferior good if a(n) ________ in buyers' income causes a(n) ________ .

A) increase; increase in demand
B) increase; increase in quantity demanded
C) increase; decrease in demand
D) decrease; decrease in demand

Ans: C) increase; decrease in demand

Economics

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As a consumer buys more of a good, total utility eventually becomes negative

a. True b. False

Economics

Which of the following identities describe the equation of exchange?

a. Money in circulation × prices = velocity × income b. Money in circulation × income = velocity × prices c. Real GDP = money in circulation × velocity d. Nominal GDP = money in circulation × velocity e. Real GDP = prices × money in circulation × velocity

Economics