If Tofu Is a Normal Good, an Increase in Income

question 231

Multiple Choice

If tofu is a normal good, an increase in income will:

• A) cause tofu to sell at a lower price.
• B) increase the production of tofu.
• C) shift the demand curve for tofu to the left.
• D) shift the demand curve for tofu to the right.
• E) rotate the supply curve in a clockwise manner.

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Definitions:

Expected Value

The weighted average of all possible values of a random variable, considering the probabilities of each outcome.

Fixed Salary

A set amount of money paid to an employee by an employer at regular intervals, regardless of hours worked, providing income stability.

Expected Value

A statistical concept that represents the average outcome when the same event is repeated multiple times.

Utility

In economics, the satisfaction or pleasure that consumers derive from consuming goods or services.