​If Your Income Goes Up by 2% And,in Response,the Quantity

question 30

Multiple Choice

​If your income goes up by 2% and,in response,the quantity demanded of good x rises by 3%, good x can be considered

• A)​An inferior good
• B)A normal good
• C)A public good
• D)​A private good

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Definitions:

Machine-Hours

A measure of the amount of time machines are used in the production process, often utilized as an allocation base for applying overhead costs to products.

Unit Product Costs

The total cost associated with producing one unit of a product, including direct materials, direct labor, and overhead.

Markup

The difference between the cost of a good or service and its selling price, expressed as a percentage over the cost.

Selling Price

Selling price is the amount at which a product or service is offered to consumers, calculated to cover costs, overheads, and profit.