There Are Only Two Goods for John to Consume: Food

question 119

Multiple Choice

There are only two goods for John to consume: food and clothing.If clothing is an inferior good for John when his income rises to $100,000,then food is

• A)also an inferior good.
• B)a normal good.
• C)Either inferior or normal could be possible.
• D)Not enough information

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Definitions:

Quality Control

The process of ensuring that products and services meet specified standards of quality through testing and inspections.

Lot Sizes

Lot sizes refer to the quantity of items grouped together for manufacturing or purchasing purposes, affecting production planning and inventory management.

Economic Order Quantity

A formula used to determine the most cost-effective quantity to order stock, minimizing both ordering and holding costs.

Carrying Costs

Expenses associated with holding inventory, such as storage, insurance, and opportunity costs.