If a Consumer's Income Increases and If All Goods Are

question 38

Multiple Choice

If a consumer's income increases and if all goods are normal goods,

• A)the quantity bought of each good decreases.
• B)the quantity bought of some normal goods increases and of other normal goods decreases,but we can't make an accurate prediction.
• C)some goods become inferior because it isn't possible to buy all goods.
• D)the quantity bought of each good increases.
• E)the supply of all goods increases and the marginal utility from all goods decreases.

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Definitions:

Marginal Cost

The extra expense associated with manufacturing an additional unit of a product or service.

Oligopolistic Firm

A company operating in an oligopoly market structure, characterized by a few firms dominating the market, leading to specific behaviors like pricing collusion or competition.

Price Charge

The amount of money demanded by a seller for a product or service, essentially the cost to the buyer.

Marginal Revenue Curve

A graphical representation that shows how the addition of one more unit of a good or service sold affects the total revenue of a business.