What Is the Effect of a Rise in Income on the Quantity

question 42

Multiple Choice

What is the effect of a rise in income on the quantity demanded of a product?

• A)It will rise if it is an inferior good.
• B)It will rise if it is a normal good.
• C)It will fall if it has many substitute goods.
• D)It will fall if price elasticity of demand is zero.

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Definitions:

Internal Attributions

The process of attributing the cause of one's own or another's behavior to internal, personal characteristics rather than to external factors.

External Attributions

The process of assigning the cause of behavior to some situation or event outside a person's control rather than to some internal characteristic.

Entity Theorists

Individuals who believe that personal attributes, such as intelligence or personality, are fixed and cannot be changed.

Incremental Theorists

Individuals who believe that abilities and intelligence can grow and improve over time with effort and practice.