Consider the Following Information for the U

question 158

Multiple Choice

Consider the following information for the U.S. economy (figures in billions) . Table 7-6
Refer to Table 7-6. What was the value of national income?

• A) $7,123
• B) $7,666
• C) $8,841
• D) $11,004

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Definitions:

Normal Good

A good that has a positive income elasticity, so that as consumer income rises, demand for the good rises, too.

Market Supply

The total quantity of a good or service that sellers are willing and able to sell at a given price over a specific period.

Elasticity

Elasticity refers to the measure of how much the quantity demanded or supplied of a good changes in response to a change in price.

Normal Good

A good for which demand increases as the income of consumers increases and decreases as the income of consumers decreases.