If Good a Is a Normal Good and Income Increases

question 290

Multiple Choice

If good A is a normal good and income increases, the equilibrium price of A ________ and the equilibrium quantity of A ________.

• A) rises; increases
• B) rises; decreases
• C) falls; decreases
• D) falls; increases

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Definitions:

Elementary

Pertaining to the basic, fundamental aspects or principles of a subject.

Information

Data that is processed, organized, or structured in a given context to make it meaningful and useful.

Knowledge

Information, understanding, or skill obtained through experience or education.

Strategic IS

Refers to Strategic Information Systems, which are systems that help organizations gain a competitive advantage through their use.