Ceteris Paribus,if Income Increases and as a Result,the Demand for Good

question 90

Multiple Choice

Ceteris paribus,if income increases and as a result,the demand for good X increases and the demand for good Y falls,

• A)Good X is an inferior good and good Y is a normal good.
• B)Good X is a normal good and good Y is an inferior good.
• C)Goods X and Y are substitute goods.

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay.

Quota Rights

Licenses or permissions issued by a government that allow specific quantities of goods to be imported or exported.

Economic Welfare

The overall well-being and standard of living of people in terms of the quantity and quality of goods and services available to them.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay.