When Income Increases, the Demand Curve for X Shifts Rightward

question 10

Multiple Choice

When income increases, the demand curve for X shifts rightward and the demand curve for Y shifts leftward. These shifts mean that

• A) X and Y are both normal goods.
• B) X is a normal good and Y is an inferior good.
• C) X is an inferior good and Y is a normal good.
• D) X and Y are complements.

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Definitions:

Compensation

The total amount of the various salaries, wages, bonuses, benefits, and other forms of payment given to employees for their work.

Profitable Stores

Retail or commercial outlets that generate more revenue than the operating and other costs, thereby yielding profit.

Profit Based Compensation

A remuneration strategy where employees' or executives' earnings are directly linked to the profitability of the organization.

Sales Agent

is an individual or company authorized to sell products or services on behalf of a manufacturer or service provider.