When Adam's Income Increases, He Purchases More Tickets to Broadway

question 156

Multiple Choice

When Adam's income increases, he purchases more tickets to Broadway musicals than he did before his income increased. For Adam, Broadway musicals are a(n)

• A)normal good.
• B)inferior good that is not a Giffen good.
• C)Giffen good.
• D)optimal good.

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Definitions:

Inventory

Goods and materials that a business holds for the ultimate goal of resale, production, or utilization in manufacturing.

Receivable Turnover

A financial metric indicating how efficiently a company collects revenue from its credit customers by measuring the number of times average accounts receivable are collected during a period.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a specific period, indicating the efficiency of inventory management.

Tax Rate

The percentage of income or value of a good, service, or asset collected by the government as tax.