The Demand for Most Products Varies Directly with Changes in Consumer

question 131

Multiple Choice

The demand for most products varies directly with changes in consumer incomes. Such products are known as

• A) complementary goods.
• B) competitive goods.
• C) inferior goods.
• D) normal goods.

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Definitions:

Short Run

A period in which at least one input (like plant and equipment) is fixed and cannot be changed by a business.

Long Run

A period of time in which all factors of production and costs are variable, allowing all inputs to be adjusted.

Alternative Goods

Products or services that can be used in place of each other, satisfying the same customer need or want.