Which household characteristic has the largest effect on household income distribution?
A) the size of the household
B) the age of householders
C) the race of household members
D) the level of educational attainment of household members
Question 2
In the above figure, if D2 is the original demand curve for a normal good and income decreases, which price and quantity might result?
A) point a, with price P2 and quantity Q2
B) point b, with price P1 and quantity Q1
C) point c, with price P3 and quantity Q3
D) point d, with price P1 and quantity Q3
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