14. Consider the market for frozen yogurt. Assume the market starts at point A .
ID: 1140633 • Letter: 1
Question
14.
Consider the market for frozen yogurt. Assume the market starts at point
A.
An increase in income causes a movement to point
A.
B because the price of resources used to make frozen yogurt will decrease.
B.
D if frozen yogurt is a normal good.
C.
D because the price of resources used to make frozen yogurt will increase.
D.
C because the price of resources used to make frozen yogurt will increase.
E.
B if frozen yogurt is a normal good.
Price (dollars per pint) 4 0 5 10 15 20 25 30 35 40 Quantity (pints per day)Explanation / Answer
It will move the demand to D, that means higher price and higher quantity and yogurt is a normal good. The answer is "B".
Related Questions
Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.