If a Good Is Inferior, an Increase in Income Would

question 117

Multiple Choice

If a good is inferior, an increase in income would shift the _____

• A) demand curve leftward.
• B) supply curve leftward.
• C) supply curve rightward.
• D) supply and demand curves leftward.
• E) demand curve rightward.

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Definitions:

Financial Security

Financial security refers to the peace of mind felt when one is not worried about their income being sufficient to cover their expenses; it also pertains to the stability and predictability of future financial prospects.

Government Bond

A type of investment where you lend money to a government in exchange for an agreed rate of interest over a certain period of time.

Apple Stock

Shares of ownership in Apple Inc., a multinational technology company known for its electronics and software.

Proprietorship

A form of business organization owned by a single individual who is responsible for its debts and entitled to its profits.