If a Good Is Considered a Normal Good,the Demand Curve

question 45

Multiple Choice

If a good is considered a normal good,the demand curve will shift ________ when income increases because ________.

• A) right; the income and substitution effects move in the same direction.
• B) right; the income and substitution effects move in the opposite direction.
• C) left; the income and substitution effects move in the same direction.
• D) left; the income and substitution effects move in the opposite direction.

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Definitions:

ESPs

Extrasensory perception, involving the reception of information not gained through the recognized physical senses but sensed with the mind.

Watts

A unit of power in the International System of Units (SI) that measures the rate of energy conversion or transfer with respect to time, equivalent to one joule per second.

Basilar Membrane

A key component of the cochlea in the inner ear, playing a crucial role in the process of hearing by vibrating in response to sound.

Malleus

A small bone in the middle ear, also known as the hammer, which plays a critical role in transmitting sound vibrations to the inner ear.