Author Question: If an Engel curve has a positive slope A) both goods are normal. B) the good on the horizontal ... (Read 85 times)

ghost! · **on:** Jul 1, 2018

If an Engel curve has a positive slope

A) both goods are normal.
B) the good on the horizontal axis is normal
C) as the price of the good on the horizontal axis increases, more of both goods in consumed.
D) as the price of the good on the vertical axis increases, more of the good on the horizontal axis is consumed.

Question 2

Refer to Scenario 2.2. Under what circumstances will the equilibrium level of output of dental care remain the same?

A) If supply shifts more than demand.
B) If demand shifts more than supply.
C) If both demand and supply shift by the same magnitude.
D) If supply and demand shift in the same direction.