If an Increase in Income Leads to a Decrease in the Demand

question 69

Multiple Choice

If an increase in income leads to a decrease in the demand for popcorn, then popcorn is

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

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Definitions:

Modernizing Economies

Refers to economies undergoing a transition from traditional agricultural methods to more industrial and technological methods of production.

Declining Birthrates

A situation where the number of births per year decreases over a period of time, affecting population growth.

Population Growth

The increase in the number of individuals in a population, often measured by a percentage over time.

Electricity Generating Plants

Electricity generating plants are facilities equipped to produce electricity through various means, including fossil fuels, nuclear power, or renewable sources.