The Figure Below Shows a Consumer Maximizing Utility at Two

question 22

Multiple Choice

The figure below shows a consumer maximizing utility at two different prices (the left panel) and the consumer's demand for good X at the same two prices of good X (the right panel) .The price of good Y is $14.When the price of X increases from point M to point N along the demand curve,it is clear that good X ___________ (is,is not) a Giffen good because _______________.

• A)is; the total effect of the price increase is negative.
• B)is; the income effect reinforces the substitution effect.
• C)is; the income effect is larger than the substitution effect.
• D)is not; the substitution effect reinforces the income effect.
• E)is not; good X is an inferior good.

---

Definitions:

Transformational Leadership

is a leadership style that seeks to inspire and motivate followers to achieve extraordinary outcomes by fostering a shared vision, challenging norms, and encouraging growth.

Visionary Leadership

Leadership that involves a leader who creates and articulates a realistic, credible, and attractive vision of the future that improves upon the present situation.

1980s

A decade known for its significant political, cultural, and technological developments, impacting global economic policies, music, and the beginning of the digital revolution.

Charismatic Leadership

A style of leadership characterized by a leader's ability to inspire and motivate followers through their personal charm and persuasive communication.