Nancy Likes Pasta Today More Than She Did Yesterday

question 46

Multiple Choice

Nancy likes pasta today more than she did yesterday.This fact leads us to conclude that

• A)Nancy must now consider pasta a luxury.
• B)Nancy must have experienced an increase in her income.
• C)Nancy is now willing to pay more than before for pasta at each relevant price of pasta.
• D)the supply of pasta must have increased and stimulated Nancy's enhanced taste for pasta.

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Definitions:

Rates Of Exchange

The value of one currency for the purpose of conversion to another.

Barter System

An exchange system in which goods or services are directly exchanged for other goods or services without the use of money.

Goods

Physical items that are produced for sale on the market, which can satisfy human wants or needs, such as food, clothes, and cars.

Trade

The exchange of goods, services, or both between two or more parties, either within the same country or across international borders.