An inferior good is one for which an increase in income causes a(n) ?

Related Mcqs:

Suppose a frost destroys much of the Florida orange crop. At the same time, suppose consumer tastes shift toward orange juice, What would we expect to happen to the equilibrium price and quantity in the market for orange juice ?

A. price will decrease, quantity is ambiguous B. The impact on both price and quantity is ambiguous. C. Price will increase, quantity will increase D. price will increase, quantity will decrease E. price will increase, quantity is ambiguous....

It is necessary to ration a good whenever ?

A. supply exceeds demand B. a surplus exists C. there is perfectly inelastic demand for the good D. demand exceeds supply...

An allocation is Pareto-efficient if no reallocation of resources would make some people _______ without making others ________?

A. worse off; worse off B. better off; better off C. better off; worse off D. equal, unequal...

The problem posed by a natural monopoly is that it faces a _____ This means that _______?

A. increasing average cost curve, marginal cost lies above average cost B. increasing average cost curve, marginal cost lies below average cost C. decreasing average cost curve marginal cost lies above average cost D. decreasing average cost curve, marginal cost lies below average cost...

A shift in demand will have more effect on price than quantity if ?

A. The price elasticity of supply is + 3 B. The price elasticity of supply is + 0.2 C. The price elasticity of supply is + 2 D. The price elasticity of supply is infinity...