Suppose Good a Is a Normal Good

question 28

Multiple Choice

Suppose Good A is a normal good. Which of the following will increase the demand for Good A?

• A) An increase in the price of its substitutes
• B) A lower expected future relative price of A
• C) An increase in the price of its complements
• D) A decrease in income

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Definitions:

Compensatory Behavior

Actions taken to counteract or make up for a deficiency or problem, often seen in contexts such as eating disorders, where individuals might excessively exercise or fast to "make up for" caloric intake.

Diuretics

A class of medications designed to increase the amount of water and salt expelled from the body as urine.

Anorexia Nervosa

An eating disorder characterized by an intense fear of gaining weight and a distorted body image, leading to severe weight loss and health risks.

Binge Eating Disorder

A psychological condition characterized by recurrent episodes of eating large quantities of food, often quickly and to the point of discomfort.