Pizza Is a Normal Good If the Demand

question 154

Multiple Choice

Pizza is a normal good if the demand

• A)for pizza rises when income rises.
• B)for pizza rises when the price of pizza falls.
• C)curve for pizza slopes upward.
• D)curve for pizza shifts to the right when the price of burritos rises, assuming pizza and burritos are substitutes.

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Definitions:

Capital Goods

Tangible resources utilized by a business in creating goods and services for consumer consumption during the manufacturing process.

Technology Improvement

Enhancements or upgrades in technological capabilities that increase efficiency, productivity, or performance in processes or products.

Production Possibilities Curve

illustrates the maximum achievable output of two goods with a given set of resources and technology, demonstrating the trade-offs and opportunity costs in production.

Inefficiently Employed Resources

Inefficiently Employed Resources refer to the use of resources in a way that does not maximize the potential output or productivity, often leading to wastage and lower economic efficiency.