Michael Graduates from College and His Income Increases by $40,000

question 163

Multiple Choice

Michael graduates from college and his income increases by $40,000 a year. Other things held constant, he decreases the quantity of pizza he buys. For Michael, pizza is:

• A) an inferior good.
• B) a complement.
• C) a substitute.
• D) a normal good.

---

Definitions:

SEC

Refers to the Securities and Exchange Commission, a U.S. federal agency responsible for enforcing federal securities laws and regulating the securities industry.

Registration Statement

A set of documents, including financial statements and a prospectus, filed with a regulatory body (like the SEC) to register a new issue of securities for sale to the public.

SEC

Securities and Exchange Commission, a U.S. government agency responsible for regulating the securities markets and protecting investors.

Securities and Exchange Commission

A U.S. federal agency responsible for enforcing the federal securities laws, proposing securities rules, and regulating the securities industry.