Suppose There Are Only Two Goods, a and B, and That

question 89

Multiple Choice

Suppose there are only two goods, A and B, and that consumer income is constant. If the price of good A falls and the consumption of good B rises, we can conclude that

• A) B is a normal good.
• B) B is an inferior good.
• C) A is an inferior good.
• D) both A and B are normal goods.
• E) A is a normal good.

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Definitions:

Estate

The collective assets, rights, and interests that a person owns at death, encompassing both real property and personal property.

Trust Instrument

A legal document that creates a trust, specifying the terms, trustees, beneficiaries, and purpose.

Trust's Purpose

The specific objectives or intentions for which a trust is established, guiding how the trust's assets are to be managed and used.

Constructive Trust

An equitable remedy resembling a trust, imposed by a court in order to benefit a party that has been unjustly enriched at another's expense, even though no actual trust has been created by the parties.