If Demand for Rolls Royce Automobiles Rises in an Area

question 86

Multiple Choice

If demand for Rolls Royce automobiles rises in an area where incomes have increased, this tells us that a Rolls Royce is

• A) a normal good.
• B) an inferior good.
• C) a complementary good.
• D) a substitute good.

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Definitions:

Widgets

A generic term often used to refer to a fictional or unspecified product or gadget.

Nonunion Firms

Companies or organizations where the workforce is not represented by a labor union, often resulting in different working conditions compared to unionized settings.

Foreign Producers

Companies or individuals located outside a given country that produce goods or services for that country's market.

Union Wages

Wages negotiated by labor unions on behalf of their members, often resulting in higher pay and better work conditions compared to non-unionized workers.