Suppose That Frozen Dinners Were Once a Normal Good for John,but

question 118

Multiple Choice

Suppose that frozen dinners were once a normal good for John,but now frozen dinners are an inferior good for him.John's demand curve for frozen dinners

• A) has become steeper as a result.
• B) has become flatter as a result.
• C) has not changed as a result.
• D) has disappeared as a result.

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Definitions:

Annual Rate

A percentage representing the interest or growth a sum of money would earn over the course of a year.

Discounted

Reduced in price or value, often to encourage purchase or reflect the present value of future cash flows.

Simple Interest

Simple interest is a method of calculating the interest charge on a loan or investment based on the original principal amount and not on accumulated interest.

Contract

A legally binding agreement between two or more parties that outlines terms and conditions.