If the Demand for Computers Shifts to the Right as Consumers

question 31

Multiple Choice

If the demand for computers shifts to the right as consumers' incomes rise, computers are

• A)inferior goods.
• B)complement goods.
• C)normal goods.
• D)substitute goods.

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Definitions:

Income Elasticity

A measure of how much the demand for a good or service changes in response to changes in the consumer's income.

Midpoint Method

A technique used to calculate the percentage change between two values, avoiding the problem of path dependency by using the average of the initial and final values as the base.

Normal Goods

Goods for which demand increases as the income of individuals increases.