Suppose an Individual Experiences a Permanent Increase in Income

question 48

Multiple Choice

Suppose an individual experiences a permanent increase in income. As a result of this increased income, further assume that the individual eats dinner at restaurants more frequently each month. This information suggests that dinners at restaurants for this individual are

• A) an inferior good.
• B) a substitute good.
• C) a normal good.
• D) both complimentary and inferior.

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Definitions:

Flying Too High

Often alludes to overconfidence or arrogance that can lead to risky behavior or decisions, risking a fall from success or favor.

Closed Group

A type of group with fixed membership where entry is restricted to certain individuals.

Social Needs

The human desire for belonging, intimacy, and interpersonal relationships, situated mid-level in Maslow's hierarchy.

Teams Identity

The collective sense of being and belonging that develops among members of a team, influencing how they see themselves as part of the group.