Which of the Following Must Be True If Good X

question 395

Multiple Choice

Which of the following must be true if good X is a normal good and income increases?

• A) The demand for X will increase, and thus the price and quantity sold and bought will decrease.
• B) The demand for X will decrease, and thus the price and quantity sold and bought will decrease.
• C) The demand for X will increase, and thus the price and quantity sold and bought will increase.
• D) The demand for X will decrease, and thus the price and quantity sold and bought will increase.
• E) The demand for X will increase, and thus the price and quantity sold and bought will remain the same.

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Definitions:

Progressive Income Tax

A tax system where the tax rate increases as the taxable amount of income increases, aimed at ensuring a fairer distribution of wealth.

Wealthy Americans

Individuals in the United States who possess a significant amount of financial assets, income, and influence.

Income Inequality

The uneven distribution of income within a population, leading to gaps between the wealthy and the poor.

Agricultural Production

The process of cultivating crops and livestock for human consumption, a key sector in economies for providing food and raw materials.