If a Good Is Normal,then an Increase in Income Will

question 46

Multiple Choice

If a good is normal,then an increase in income will result in a(n)

• A)increase in the demand for the good.
• B)decrease in the demand for the good.
• C)movement down and to the right along the demand curve for the good.
• D)movement up and to the left along the demand curve for the good.

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Definitions:

Short-Term Solvency

A financial metric indicating a company's ability to meet its short-term obligations, highlighting liquidity.

Current Ratio

A financial ratio indicating a firm's capacity to meet its short-term liabilities using its existing assets.

Current Assets

Current assets are assets that a company expects to convert into cash, sell, or consume within one year or its operating cycle, whichever is longer.

Retained Earnings

The part of net profits that is not distributed as dividends but is kept by the firm to reinvest in its fundamental operations or to settle debts.