If a Consumer's Income Increases and If All Goods Are

question 38

Multiple Choice

If a consumer's income increases and if all goods are normal goods,

• A)the quantity bought of each good decreases.
• B)the quantity bought of some normal goods increases and of other normal goods decreases,but we can't make an accurate prediction.
• C)some goods become inferior because it isn't possible to buy all goods.
• D)the quantity bought of each good increases.
• E)the supply of all goods increases and the marginal utility from all goods decreases.

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Definitions:

Specific

Clearly defined or identified; distinct from others or from the general case.

External

Related to, situated on, or derived from the outside of something or someone, often considered in relation to external influences or environments.

Internal

pertains to occurring or existing within the limits or boundaries of something; often referring to processes or features within an organization or an individual.

Unstable

Lacking consistency or predictability in state, structure, or behavior, leading to unpredictability.