If an Increase in Income Results in a Decrease in the Quantity

question 69

Multiple Choice

If an increase in income results in a decrease in the quantity demanded of a good, then the good is:

• A)a normal good
• B)a necessity
• C)an inferior good
• D)a luxury

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Definitions:

Minimum Wage

The lowest legal salary that employers can pay to workers, aimed at protecting workers from exploitation.

Equilibrium Employment

The level of employment where the quantity of labor supplied is equal to the quantity of labor demanded.

Labor-Force Participation

The percentage of the working-age population that is engaged in the labor market, either employed or actively seeking employment.

Minimum Wage

The lowest legally permissible hourly wage that companies can pay to employees.