If a Consumer Purchases More of Good X and Good

question 144

True/False

If a consumer purchases more of good X and good Y after her income increases, then neither good X nor good Y is an inferior good for her.

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Definitions:

Committed Fixed Costs

Investments in facilities, equipment, and basic organizational structure that can’t be significantly reduced even for short periods of time without making fundamental changes.

Short Run

A period in economics during which the quantities of some inputs cannot be changed, limiting the capacity to adjust production levels.

Step-Variable Cost

Refers to a cost that remains fixed for a certain level of production or activity, but can increase in a step manner when a certain threshold is exceeded.

Activity

The actions undertaken by an individual or organization, often relating to business operations or project management.