If the Demand for a Good Increases When People's Incomes

question 251

Multiple Choice

If the demand for a good increases when people's incomes increase,

• A) the good is an inferior good.
• B) the law of demand is violated.
• C) the good's demand curve must be slope upward.
• D) the good is a normal good.
• E) the good is a substitute good for an inferior good.

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Definitions:

Quota

A predetermined limit on the amount of goods that can be imported or produced within a set period.

Mentally Incapacitated

A condition in which a person is unable to make rational decisions or manage their own affairs due to mental deficits or illness.

Agency Relationships

A legal arrangement in which one party (the agent) agrees to act on behalf of another (the principal) in dealings with third parties.

Maintenance Agreement

A contract in which one party agrees to maintain an asset owned by another party, often including repair and upkeep services.