--%>

State normal good

Normal good: It is a good for which, other things equivalent, a rise in income leads to a rise in demand.

   Related Questions in Microeconomics

  • Q : Supply of Labor-Income and Substitution

    I have a problem in economics on Supply of Labor: Income and Substitution Effects. Please help me in the following question. When the income effect of higher wage rate is more influential than the substitution effect, then: (1) The supply curve of labor is positively

  • Q : Common type of competition in

    The most common type of competition among firms in monopolistic competition is: (1) price competition. (2) product differentiation. (3) collusion. (4) predatory pricing. (5) cutthroat competition. I need a good ans

  • Q : Market Power and Monopsony Power-

    Assume that a firm with market power in the output market wants to develop and that hiring more workers needs it to raise salaries 8 percent for all the workers. Output prices will most likely: (i) Increase 8 percent to cover the wage rise. (ii) Increase less than 8 p

  • Q : Maximum possible total revenue from

    Maximum possible total revenue by sales of the extremely popular St. Valentine’s Day software is about: (i) $65 million. (ii) $45 million. (iii) $85 million. (iv) $105 million. (v) $200 million.

    Q : Problem on deadweight loss Assume that

    Assume that the domestic demand for television sets is explained by Q = 40,000 − 180P and that the supply is provided by Q = 20P. When televisions can be freely imported at a price of $160, then how many televisions would be generated in the domestic market? By

  • Q : Which of the curves have constant price

    Which of the given curves have constant price elasticities: (1) A vertical demand curve [when one ever exists]. (2) A horizontal curve which is a demand curve which is identical with a horizontal supply curve. (3) A demand curve which is a rectangular

  • Q : Relatively price inelastic and consumer

    When demand for a consumer good is relatively price inelastic, in that case the: (i) total spending of consumers will decline when the price rises. (ii) demand curve is linear and vertical. (iii) price of the good is determined through supply alone. (

  • Q : Maximum economic profit operates in new

    When this competitive firm operates at point d in demonstrated graph, in that case this: (w) could increase profits by expanding output to q5. (x) maximizes economic profit [ as area P2P1de], but these profits will eva

  • Q : Monopsonistic Exploitation and Wage

    Can someone please help me in finding out the accurate answer from the following question. If a firm's wage structure reflects the keenness of individual employees to work, terms which are most applicable comprise: (i) Monopsonistic exploitation and the wage discrimin

  • Q : Shifting of Complementary Goods towards

    The War in Iraq contributed to sharp rises in the world price of oil. This is most probable to encompass caused the demand for car washes in United States to: (1) Shift towards right. (2) Increase vertically. (3) Stabilize. (4) Shift towards left. (5) Much more inform