The Owner of a Kayak Tour Business Has Been Looking

question 207

Multiple Choice

The owner of a kayak tour business has been looking over the latest data from the Census, which reported that income in the area where she is based has increased by 20%. Assuming that participating in a kayak tour is a normal good, which of these would be an accurate prediction of what could happen to kayak tour sales, ceteris paribus?

• A) Since incomes have increased by 20% in the area, the owner can expect to see a decrease in sales, ceteris paribus.
• B) Since incomes have increased by 20% in the area, the owner can expect to see no change in sales, ceteris paribus.
• C) Since incomes have increased in the area, the owner can expect to see a 20% increase in sales, ceteris paribus.
• D) Since incomes have increased by 20% in the area, the owner can expect to see an increase in sales, ceteris paribus.

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Definitions:

Violent Tendencies

Refers to patterns of behavior inclined towards aggression or physical harm to others.

Abusive Relations

Relationships characterized by patterns of harmful or coercive behaviors used by one partner to maintain power over another.

Premeditated

Planned or thought out in advance, involving deliberate intent.

Quarrel

A verbal dispute or argument between people, usually indicating a disagreement on a particular issue.