People Eat at Restaurants Less Often When Their Incomes Fall
People eat at restaurants less often when their incomes fall because of a recession. Eating at restaurants must be
A) an inferior good.
B) a substitute for other goods.
C) a complement to other goods.
D) a normal good.
E) an inelastic good.
Alan purchases 10 per cent fewer bags of corn chips when his income decreases by 5 per cent. Based on only this information, we know that for Alan
A) corn chips are a complement to salsa.
B) corn chips are an inferior good.
C) corn chips are a substitute for pretzels.
D) corn chips are a normal good.
E) the price of chips fell.
Assume that it is predicted that, for the years after you graduate from university, the entire economy will experience a long period of recession during which people's incomes will decrease. What type of industry would be the best for you to find employment in if this prediction is correct? An industry that produces a product that
A) is a complement.
B) is income inelastic.
C) is income elastic.
D) is inferior.
E) None of these industries.
A product that has a negative income elasticity of demand is ________ good.
A) a normal
B) a negative
C) a complementary
D) an inferior
E) a substitute