Prince Is Currently Consuming Some of Good X and Some

question 556

Multiple Choice

Prince is currently consuming some of good X and some of good Y. If good Y is a normal good for Prince, then an increase in his income will definitely cause him to

• A)increase his consumption of X.
• B)increase his consumption of Y.
• C)decrease his consumption of X.
• D)decrease his consumption of Y.

---

Definitions:

Job Security

The assurance or probability that an individual will keep their job without the risk of becoming unemployed.

Equity Theory

A theory of motivation that suggests individuals assess their job satisfaction based on the ratio of inputs to outcomes, compared to others.

Market Price

The price at which an item or service is traded in the competitive marketplace.

Competitive Market

A marketplace where numerous competitors vie to sell their goods or services, ensuring no single participant can control the market dynamics.