If Pretzels Are a Normal Good, the Income Effect of a Price

question 163

Multiple Choice

If pretzels are a normal good, the income effect of a price change means that

• A)as income increases, the quantity demanded increases along the demand curve for pretzels
• B)as income increases, the demand curve for pretzels shifts rightward
• C)as income increases, the demand curve for pretzels shifts leftward
• D)as the price of pretzels increases, the real income of individuals who demand pretzels decreases, so the quantity demanded of pretzels decreases
• E)as the price of pretzels increases, income increases

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Definitions:

Corporate Ladder

A metaphorical hierarchy within a business organization that employees ascend as they gain promotions and responsibilities.

Interviewer Illusion

The tendency for interviewers to overestimate their ability to evaluate interviewees accurately, often leading to biased judgments.

Face-To-Face Conversations

Direct communication between people in the same location, allowing for immediate feedback and nonverbal cues.

360-Degree Feedback

A performance appraisal system where an employee receives feedback from all stakeholders, including superiors, peers, and subordinates.