A Good Whose Demand Is Inversely Related to Income Is

question 49

Multiple Choice

A good whose demand is inversely related to income is a(n)

• A) normal good.
• B) inferior good.
• C) regular good.
• D) new good.

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Definitions:

Operating Loss

A financial metric representing the negative balance resulting from a company's operating expenses exceeding its revenues.

Variable Cost

Costs that change in proportion to the level of activity or volume of goods produced, such as raw materials and labor expenses.

Fixed Costs

Expenses that remain constant regardless of the amount of output or sales, including costs like lease payments, wages, and insurance premiums.

Break-Even Point

The financial point at which costs equal revenues, meaning there is no profit or loss.