If There Is an Increase in Income, Which of the Following

question 368

Multiple Choice

If there is an increase in income, which of the following is true?

• A) The demand for complementary goods decreases.
• B) The demand for substitute goods decreases.
• C) The demand for normal goods decreases.
• D) The demand for normal goods increases.
• E) The supply for all goods decreases.

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Definitions:

Bay of Pigs

The site of a failed invasion of Cuba in 1961, which was sponsored by the United States and intended to overthrow Fidel Castro.

Group Polarization

The tendency for a group to make decisions that are more extreme than the initial inclination of its members, often observed after group discussions.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Encourage Doubt

To promote questioning or skepticism about certain beliefs or assumptions.