As a Group, U

question 171

Multiple Choice

As a group, U.S. consumers view hamburger as a normal good at low income levels and as an inferior good at high income levels. Based on this information, which of the following statements is NOT true?

• A) As income for all consumers rises, the hamburger demand curves of low-income consumers shift rightward, and the demand curves of high-income consumers shift leftward.
• B) The aggregate demand curve for hamburger in the U.S. is upward sloping at low prices.
• C) The Engel curve for hamburger consumed in the U.S. is upward sloping at low income levels and downward sloping at high income levels.
• D) The income-consumption curve for hamburger and all other food products cannot be a straight line.

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Definitions:

Domestic Price

The price of goods or services within a country's domestic market, potentially influenced by tariffs, taxes, and supply and demand.

Tariff

A tax imposed on imported goods, usually to protect domestic businesses and market from foreign competition.

Liberalization

The process of reducing government regulations and restrictions in an economy to encourage more business activities and investments.

GATT

General Agreement on Tariffs and Trade, a legal agreement minimizing barriers to international trade.