If the Incomes Increase and Electricity Is a Normal Good

question 45

Multiple Choice

If the incomes increase and electricity is a normal good, then:

• A) the quantity demanded for electricity decreases.
• B) the demand for electricity increases.
• C) the quantity demanded for electricity increases.
• D) the demand for electricity decreases.

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Definitions:

Required Rate of Return

A rephrased definition; the minimum percentage of return investors demand from an investment to compensate for its risk.

Constant Rate

A constant rate implies a steady, unchanging rate of growth or return over a specified period of time.

Year-End Dividend

A dividend payment made by a company to its shareholders at the end of its fiscal year.

Recreational Vehicles

Motor vehicles or trailers equipped with living space and amenities found in a home, used for travel or camping.