A Good Is Inferior If Which of the Following Is

question 65

Essay

A good is inferior if which of the following is true?
A.When income increases, the demand remains unchanged.
B.When income increases, the demand decreases.
C.When income increases, the demand increases.
D.Income and the demand are unrelated.

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Definitions:

Straight-Line Depreciation

A method of calculating the depreciation of an asset by evenly spreading its cost over the expected useful life.

Residual Value

The estimated salvage value or end-of-useful-life value of an asset after depreciation has been fully applied.

Balance Sheet

A financial statement that displays a company's assets, liabilities, and shareholders' equity at a specific point in time, giving a snapshot of its financial condition.

Net Loss

The result when a company's total expenses exceed its total revenues during a specific period, indicating a financial loss.