When a Good Is Normal

question 56

Multiple Choice

When a good is normal,

• A) An increase in income raises consumption at each price, so the demand curve shifts to the left
• B) An increase in income raises consumption at each price, so the demand curve shifts to the right
• C) A decrease in income lowers consumption at each price, so the demand curve shifts to the right
• D) An increase in income lowers consumption at each price, so the demand curve shifts to the left

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Definitions:

Proxy Variable

An alternative that is used to stand in for a variable that cannot be directly measured or is not readily available.

Anthill

A mound formed above the ground by ants as they excavate tunnels for their nests.

Proxy Variable

A variable used in place of another variable that is not directly measurable or accessible, often because of practical limitations.

Happiness

Happiness is a state of well-being and contentment characterized by emotions ranging from contentment to intense joy; it reflects subjective evaluations of life satisfaction and emotional experiences.