A Good Is an Inferior Good If the Consumer Buys

question 405

Multiple Choice

A good is an inferior good if the consumer buys more of it when

• A)his income rises.
• B)the price of the good falls.
• C)the price of a substitute good rises.
• D)his income falls.

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Definitions:

Forced

Action taken under compulsion or pressure, lacking voluntary intention.

Fraudulent Misrepresentation

A false statement made knowingly, without belief in its truth, or recklessly, with disregard to its truth, which is intended to induce another party to enter into a contract.

Scienter

Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive.

Shares

Represents units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.