Suppose Your Income Doubled And, at the Same Time, the Prices

question 22

Multiple Choice

Suppose your income doubled and, at the same time, the prices of all goods doubled. Suppose you continue to purchase exactly the same bundle as before. What would the law of demand suggest about this behaviour?

• A)Reasonable, because the relative price did not change.
• B)Uncertain, because we don't know if the goods you purchase are normal or not.
• C)Once you have a chance to adjust, you will purchase the low cost goods.
• D)Not possible, because when the price goes up the quantity demanded always falls.

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Definitions:

Scope 3

Emissions that are a consequence of the activities of the company but occur from sources not owned or controlled by the company, such as indirect emissions from the value chain.

Indirect Emissions

Emissions that result from the activities of an organization but are produced from sources not owned or controlled by the organization, such as electricity consumption.

Parts Per Million

A measurement unit expressing the concentration of one substance in a million parts of another, commonly used to measure chemical concentrations or defects levels in manufacturing.

Relative Measurement

The technique of comparing one metric or entity against another to assess performance or value, often used in various scientific and business contexts.