For Which Pair of Goods Below Would an Increase in Income

question 25

Multiple Choice

For which pair of goods below would an increase in income have the same effect on both goods?

• A) A normal good and an inferior good.
• B) An inferior good and a luxury good.
• C) A normal good and a luxury good.
• D) A superior good and a normal good.

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Definitions:

Merchantable

A legal term meaning something is of sufficient quality to be sold, meeting reasonable expectations for its kind.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to standardize and simplify the laws related to commerce and sales.

Deduction

Deduction in a financial context refers to the removal of a certain amount from gross income or expenses, which reduces the taxable income or net profit.

Damages

Compensation sought or awarded in a lawsuit for loss or injury suffered by the plaintiff.