A Good for Which Demand Decreases When Income Decreases Is

question 118

Multiple Choice

A good for which demand decreases when income decreases is known as a(n) ________ good.

• A) normal
• B) inferior
• C) complementary
• D) substitute

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Definitions:

Economic Profits

The excess of total revenues over total costs, including both explicit and implicit costs, indicating a return above the firm's opportunity costs.

Average Rate

The mean value of a set of rates or percentages, calculated as the sum of all rates divided by the number of rates.

Above Average Profits

Earnings that surpass the norm or average level within a particular industry or market.

Perfectly Elastic Demand

A market situation where demand for a product can drastically change to infinity with the slightest change in its price.