Exhibit 3-6 -Refer to Exhibit 3-6.If an Increase in Income Causes the in Income

question 198

Multiple Choice

Exhibit 3-6

-Refer to Exhibit 3-6.If an increase in income causes the demand for good X to shift from D? to D?,then good X is

• A) a normal good.
• B) an inferior good.
• C) a substitute good.
• D) a complementary good.
• E) a neutral good.

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Definitions:

Intermediate Goods

Products that are used as inputs in the production of other goods or services rather than being bought by consumers.

Final Output

The total value of all goods and services produced and sold for final use in the economy, avoiding duplication by excluding intermediate goods.

Durable Goods

Items with a long life span, such as appliances and automobiles, that are used over time rather than consumed quickly.

Intermediate Good

A product utilized in the manufacture of a final good or finished product, not sold directly to end consumers.