Problem on Normal and Inferior Goods

Lobster is a normal good and peanut butter is a poorer good. When your income increases, you will most likely consume: (1) More of both the goods. (2) More lobster and less peanut butter. (3) More peanut butter and less lobster. (4) Less of both goods.

Can someone please help me in finding out the accurate answer from the above options.

View Complete Question

Related Questions in Microeconomics

Q : Problem of what to produce Describe the

Describe the problem of What to produce?

Q : Estimating national income by

Describe precautions to be taken in estimating national income by expenditure technique? Answer: The following precautions are to be taken while evaluating N.I. by

Q : Expansion of increasing cost industries

Expansion of the industry in increasing cost industries causes: (w) increases in each firm’s costs at every level of output. (x) decreases in each firm’s costs at every level of output. (y) all firms to suffer long-run economic losses. (z)

Q : More willing to hold less cash and more

When households become more willing to hold less cash and more stocks or bonds, in that case the: (1) level of Aggregate Demand increases. (2) present value of future income falls. (3) interest rate falls. (4) stock market will crash.

Q : Problem on volatility of prices Can

Can someone help me in finding out the right answer from the given options. In long run, the activities of successful speculators tend to: (i) Decrease the volatility of prices. (ii) Attract legal attention resultant in imprisonment. (iii) Raise the level and volatili

Q : Prevent entry and set production A

A strategy probable to make a cartel successful would be for cartel members to: (w) give slightly differentiated outputs. (x) stagger the amounts by which they raise prices. (y) prevent entry and set production quotas which are enforceable. (z) mainta

Q : Change in relative price I have a

I have a problem in economics on Change in relative price. Please help me in the following question. The Substitution takes place all along a demand curve when there is a: (1) Rapid shortage of a required product. (2) Increase in the common price level. (3) Change in

Discover Q & A

Leading Solution Library

Avail More Than 1423029 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1958722
Asked

3,689

Active Tutors

1423029

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment