If a Turnip Is a Normal Good Then

question 38

Multiple Choice

If a turnip is a normal good then

• A)a small decrease in income increases the quantity of turnips demanded at the current price by a large amount.
• B)a large decrease in income increases the quantity of turnips demanded at the current price by a small amount.
• C)an increase in income increases the quantity demanded at the current price.
• D)an increase in income decreases the quantity demanded at the current price.
• E)an increase in price decreases the quantity demanded.

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Definitions:

Consumer Satisfaction

A measure of how products and services supplied by a company meet or surpass customer expectation.

Diminishing Marginal Utility

The principle that as a person consumes more of a product, there is a decline in the additional satisfaction or utility that person derives from consuming one more unit of the product.

Equality-Efficiency Trade-Off

This concept deals with the balance or compromise between achieving a more equitable distribution of resources and maximizing economic efficiency.

Income Equality

A situation in which earnings are distributed evenly across members of a society, reducing income disparities.