If There Are Two Goods and If Income Doubles and the Price

question 73

Multiple Choice

If there are two goods and if income doubles and the price of good 1 doubles while the price of good 2 stays constant, a consumer's demand for good

• A)1 will increase only if it is a Giffen good for her.
• B)2 will decrease only if it is a Giffen good for her.
• C)2 will increase only if it is an inferior good for her.
• D)2 will decrease only if it is an inferior good for her.
• E)None of the above.

---

Definitions:

CPP

The Canada Pension Plan, a social insurance program requiring contributions from Canadian workers and employers to provide retirement, disability, and survivor benefits.

QPP

The Quebec Pension Plan, a public retirement plan for individuals in Quebec to provide financial security when they retire.

Employment Insurance (EI)

A social welfare program that provides temporary financial assistance to unemployed workers who meet certain eligibility criteria.

Employees Contribute

The involvement or effort of workers in their job roles, tasks, or towards organizational goals.