If Income Increases, Then with Regard to Expensive Cuts of Steak

question 176

Multiple Choice

If income increases, then with regard to expensive cuts of steak, it is likely that the demand curve:

• A) shifts to the right.
• B) shifts to the left.
• C) becomes steeper.
• D) does not change.
• E) becomes flatter.

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.

Two-part Tariff

A pricing strategy that consists of a fixed fee plus a variable usage fee, common in services like utilities.

Entry Fee

An initial charge required to gain access to a service, event, or establishment.

Tying

Practice of requiring a customer to purchase one good in order to purchase another.