If the Demand Curve for an Inferior Good Is Drawn

question 56

Multiple Choice

If the demand curve for an inferior good is drawn,

• A)the curve will generally have a positive slope.
• B)the curve cannot be drawn; demand curves only exist for normal goods.
• C)the curve will generally have a negative slope.
• D)the curve will shift when the price of the good changes.

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Definitions:

Total Revenue

The overall income generated by a business from the sale of goods or services before any costs or expenses are subtracted.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where each participant has negligible influence on the price, leading to efficient outcomes where price equals marginal cost.

Output

The total amount of goods and services produced by an economic system over a specific period.

Price

The sum of money needed to buy a product, service, or property.