If a Turnip Is a Normal Good Then

question 38

Multiple Choice

If a turnip is a normal good then

• A)a small decrease in income increases the quantity of turnips demanded at the current price by a large amount.
• B)a large decrease in income increases the quantity of turnips demanded at the current price by a small amount.
• C)an increase in income increases the quantity demanded at the current price.
• D)an increase in income decreases the quantity demanded at the current price.
• E)an increase in price decreases the quantity demanded.

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Definitions:

Premium

The amount paid periodically to the insurer by the insured for covering his risk.

Expected Income

The amount of money an individual or entity anticipates earning over a certain period.

Probability

The measure of the likelihood that a particular event will occur, often expressed as a number between 0 and 1.

Insurance Market

A marketplace where individuals and entities can purchase insurance products to transfer risk and receive financial protection against loss.