Author Question: If in the market for apples the supply has decreased, then A) the supply curve for apples has ... (Read 114 times)

Beheh

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If in the market for apples the supply has decreased, then
 
  A) the supply curve for apples has shifted to the right.
  B) there has been a movement upwards along the supply curve for apples.
  C) there has been a movement downwards along the supply curve for apples.
  D) the supply curve for apples has shifted to the left.

Question 2

Health care is generally considered a normal good. Briefly explain what you would expect to see happen to spending on health care over time, with health care being considered as a normal good.
 
  What will be an ideal response?



daiying98

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Answer to Question 1

D

Answer to Question 2

With a normal good, as income increases, spending on the good also increases. Since income levels tend to increase over time, you should expect to see spending on health care increase over time.



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