Economists Use the Term Normal Good to Refer to Goods

question 25

Multiple Choice

Economists use the term normal good to refer to goods that

• A) you consume on a daily basis.
• B) you consume more of when your income falls.
• C) you consume more of when your income rises.
• D) consumers choose the same quantities of regardless of income.

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Definitions:

Illegal

Actions or activities that are forbidden by law or statute.

Price Discriminate

The practice of charging different prices to different consumers for the same product or service, based on what the seller thinks the market can bear, rather than standard costs.

Monopolist

An entity with exclusive control over the supply of a particular good or service, setting prices without competition.

Pure Monopolist

A market structure where a single firm completely dominates the market, with no close substitutes for its product, allowing it to control prices.