A Good Is a Normal Good If the Consumer Buys

question 146

Multiple Choice

A good is a normal good if the consumer buys less of it when

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

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Definitions:

Added Cost

An additional expense incurred due to a new decision or action, beyond the existing costs.

Free-Rider Problem

A situation where individuals or entities consume a good or service without contributing to its cost, leading to underproduction or depletion of the good.

National Campaign

A coordinated effort to promote or achieve a particular goal on a nationwide scale.

September 11th Memorial

A tribute to honor the victims and responders of the September 11, 2001 terrorist attacks in the United States.