If Income Increases or the Price of a Complement Falls

question 423

Multiple Choice

If income increases or the price of a complement falls, the

• A) demand curve for a normal good shifts leftward.
• B) demand curve for a normal good shifts rightward.
• C) supply curve of a normal good shifts leftward.
• D) supply curve of a normal good shifts rightward.

Identify the effects of consumption characteristics (rivalry and excludability) on market efficiency.

Understand how different types of goods are managed or provided in society.

Understand the distinctions among private goods, public goods, common resources, and artificially scarce goods based on their characteristics of excludability and rivalry in consumption.

Identify examples of private goods, public goods, common resources, and artificially scarce goods.

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Definitions:

U.S. Cars

Vehicles manufactured by companies based in the United States, reflecting the nation's automotive industry characteristics.

Japanese Tourists

Visitors from Japan who travel to other countries for leisure, business, or other purposes.

Flexible Exchange Rates

A system where the value of a country's currency is allowed to fluctuate according to the foreign exchange market without direct intervention by the country's government.

U.S. Dollar

The official currency of the United States, widely used as a standard of exchange in international markets and as a reserve currency worldwide.