In Year 1 the Average Price of X Is $10

question 214

Multiple Choice

In year 1 the average price of X is $10, and in year 2 the average price of X is $23. If consumers buy more units of X in year 2 than in year 1, it follows that

• A)the law of supply does not hold for good X.
• B)demand for good X could be lower in year 2 than in year 1.
• C)supply of good X could be less in year 2 than in year 1.
• D)good X buyers have received an increase in income between year 1 and year 2, and good X is a normal good.
• E)good X buyers have received a decrease in income between year 1 and year 2, and good X is a normal good.

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Definitions:

Performance Measures

Metrics used to assess the efficiency, effectiveness, and productivity of an individual, organization, or process.

Managers

Individuals in an organization responsible for directing and overseeing the work of a group of people.

Incentives

Benefits, rewards, or compensation offered to motivate specific actions or behaviors by individuals or organizations.