The income effect of a decrease in the price of macaroal and chese (assume this
ID: 1210703 • Letter: T
Question
The income effect of a decrease in the price of macaroal and chese (assume this is an inferior good) results in a decrease in the demand for macaroni and cheese. an increase in the quantity demanded of macaroni and cheese. a decrease in the quantity demanded of macaroal and cheese. an increase in the demand for macaroni and cheese. Imports are goods and services bought domestically and produced domestically. but produced in other countries. and resold at a profit. and net subject to tariffs. It is difficult to determine if foreign companies are selling their products for prices below their costs of production because the true costs of production are difficult to calculate. the firms have no legal obligation to reveal this information. costs are calculated in the firms local currencies. domestic taxes increase the firms' costs but it is difficult to determine the incidence of these taxes. An explicit cost is defined as a cost that does not change as output changes. a nonmonetary opportunity cost. a cost that involves spending money. a nonmonetary accounting cost. When a firm produces more output using the same inputs or the same output using fewer inputs we say that the firm experiences an increases in demand. experiences positive technological change. will hire more workers in order to produce more output. is operating in the short run. A never is maximizing total utility by buying sports magazines and protein supplements. For him to buy more sports magazines, the price of protein supplements has to fall. he price of sports magazines has to fall. the price of sports magazines has to rise.Explanation / Answer
1.
a decrease in the quantity demanded of macaroni and cheese
as income increases inferior good demand declines
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