What Types of Goods Have Compensated Demand Curves That Slope

question 65

Multiple Choice

What types of goods have compensated demand curves that slope downwards?

• A) Normal goods only.
• B) Inferior goods only.
• C) Giffen goods only.
• D) All types of goods.

---

Definitions:

Consumption Spending

The total value of all goods and services consumed by households over a specified period.

Marginal Propensity

The ratio of the change in an economic variable (such as consumption or saving) in response to a change in another variable (such as income).

Disposable Income

Income remaining for a person to spend or save after all taxes have been paid.

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been taken out.