Author Question: When the income-consumption curve has a positive slope throughout its entire length, we can conclude ... (Read 232 times)

jhjkgdfhk · **on:** Jul 1, 2018

When the income-consumption curve has a positive slope throughout its entire length, we can conclude that

A) both goods are inferior.
B) both goods are normal.
C) the good on the vertical (y) axis is inferior.
D) the good on the horizontal (x) axis is inferior.

Question 2

After the September 11, 2001 attacks on the World Trade Center, the supply of downtown office space in Manhattan was dramatically reduced. Forecasters predicted that the equilibrium price would rise, but in fact the price fell.

What are some factors that could explain the fall in the equilibrium price, which the forecasters failed to take into account? A) Demand for office space fell due to quality-of-life concerns.
B) The economic slowdown caused demand for office space to fall.
C) both A and B
D) none of the above