An Increase in Consumer Incomes Will

question 218

Multiple Choice

An increase in consumer incomes will:

• A)increase the demand for an inferior good.
• B)increase the supply of an inferior good.
• C)increase the demand for a normal good.
• D)decrease the supply of a normal good.

---

Definitions:

Antitrust Risks

The risks associated with violating laws designed to promote competition and prevent monopolies.

Vertical Integration

The combination of two or more stages of production or distribution managed by a single company to increase control and reduce costs along the supply chain.

Horizontal Integration

A business growth strategy through acquiring or merging with competitors in the same industry at the same stage of production.

Horizontal Contracts

Agreements or cooperations between businesses that operate at the same level in the supply chain, often for mutual benefit or to reduce competition.