When Joshua's Income Increases, He Purchases More Prime-Rib Dinners Than

question 466

Multiple Choice

When Joshua's income increases, he purchases more prime-rib dinners than he did before his income increased. For Joshua, prime-rib dinners are a(n)

• A)normal good.
• B)inferior good.
• C)optimal good.
• D)Giffen good.

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Definitions:

Interest

Payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at a particular rate.

Housing Prices

The amount of money required to purchase residential properties, which fluctuates based on location, demand, and other factors.

Dream House

Idealized or perfect residential property that one aspires to live in, often customized or having specific desirable features.

Cost

The amount of money or resources expended to produce or acquire a product or service.