--%>

Problem of recession shrinks incomes on normal goods

I have a problem in economics on recession shrinks incomes on normal goods. Please help me in the following question. When a recession shrinks the incomes, then market demand for filet mignon (that is, a luxury) will proportionally: (1) Increase faster than income drops. (2) Increase more gradually than income drops. (3) Drop more rapidly than income drops. (4) Drop more gradually than income drops.

Select the precise answer.

   Related Questions in Microeconomics

  • Q : Analytic time in the market period In

    In the market period: (w) price is constant. (x) output is constant. (y) supply is horizontal. (z) supply is completely elastic. Please guys help to solve this problem of Economics with some explan

  • Q : How changes in weather affect

    I have a problem in economics on how changes in weather affect agricultural output. Please help me in the following question. Economists consider how changes in the weather influence the agricultural output as: (i) Signs of ecological imbalances. (ii) Technological mo

  • Q : Burgeoning probably interest rate The

    The interest rate will most likely rise when: (1) households decide to delay consumption, causing the loanable funds accessible for business investments to raise. (2) investors become more optimistic into relation with the profitability of investment.

  • Q : Economic profit at average total cost

    When a monopolist maximizes profit with producing where average total cost is on its minimum, this: (w) should generate an economic profit. (x) should sell at a price equal to marginal cost. (y) will incur an economic loss. (z) will p

  • Q : Earn zero economic profit by

    When a monopolistic competitor is earning zero economic profit, in that case this: (1) sells at a price equal to average total cost. (2) sells at a price equal to marginal cost. (3) is at the minimum point on its average total cost cu

  • Q : What is involuntary unemployment What

    What is involuntary unemployment: The people who are willing to work at given wage rate do not obtain work.

  • Q : Determine total revenue by zero

    Hybrid Roses is the merely florist in 60 miles of Presidio, Texas. Often, lots of Texans are romantics at heart. When Hybrid Roses set the price of a dozen roses at the point where marginal revenue is zero, in that case its total revenue

  • Q : Leftward shift of PPC What does

    What does leftward shift of PPC point out? Answer: It points out underutilization of resources.

  • Q : Production possibility frontier By

    By using the production possibility frontier, revel that if a society decides to produce more capital goods associated to consumption goods in year 1, then in year 2 there will be more consumption goods.

  • Q : Prices and outputs in the short run All

    All output markets which are less than purely competitive are characterized through: (1) domination of the market by some large firms. (2) individual firms that are very small to affect their prices. (3) freedom of entry and exit in the long run. (4)