If an Increase in Income Results in Higher Prices for Yachts

question 36

Multiple Choice

If an increase in income results in higher prices for yachts, we can conclude

• A)that yachts are inferior goods.
• B)that there was a decrease in the supply of yachts.
• C)that there was an increase in the supply of yachts.
• D)that yachts are normal goods.
• E)there's no relationship between income and the demand for yachts.

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Definitions:

Land

A natural resource that refers to the earth's surface not covered by water, which can be used for agriculture, construction, or as an investment.

Insurance

A financial product that provides protection against losses or damages, typically in the form of a policy for which the insured pays a premium.

Residual Value

The calculated estimate of what an asset will be worth when it reaches the end of its functional life.

Straight-Line Depreciation

Straight-line depreciation is a method of allocating the cost of a tangible asset over its useful life in equal annual amounts.