Consider a Two-Good World,with Commodities X and Y

question 168

Multiple Choice

Consider a two-good world,with commodities X and Y.If X is an inferior good,then an increase in consumer income cannot:

• A) decrease the demand for Y.
• B) increase the demand for Y.
• C) decrease the demand for X.
• D) make the consumer better off.

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Definitions:

Earnings Retention Rate

The portion of net income that is retained by the company rather than distributed to its shareholders as dividends.

Rate Of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost.

Discontinued Operations

Components of a business that have been disposed of or are being held for sale, separate from continuing operations.

Transitory Component

Temporary fluctuations in financial or economic data that do not reflect long-term trends and are expected to revert over time.