As Wealth Increases, Savers Choose

question 61

Multiple Choice

As wealth increases, savers choose

• A)more necessity assets and fewer luxury assets.
• B)more luxury assets and fewer necessity assets.
• C)more of both luxury assets and necessity assets.
• D)fewer of both luxury assets and necessity assets.

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Definitions:

Industry Supply Curve

A graphical representation showing the total quantity of a good that producers in an industry are willing to supply at various prices.

Individual Supply Curves

Graphical representations that show the relationship between the price of a good and the quantity of the good that a single producer is willing to supply.

Short-run

A period of time in which at least one input is fixed and cannot be changed, affecting the capacity to adjust production levels.

Long-run Equilibrium

A state in which all factors of production and inputs can be fully adjusted, and there are no fixed variables, resulting in market supply equalling market demand.