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Westkost [7]
3 years ago
10

The income effect causes quantity demanded to​ ________ when the price of a normal good​ decreases, and causes quantity demanded

to​ ________ when the price of an inferior good decreases.
a. ​increase; increase

b. ​decrease; increase

c. ​increase; decrease

d. ​decrease; decrease
Business
1 answer:
AveGali [126]3 years ago
4 0

c. ​increase; decrease

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Agree

Explanation:

A deposit multiplier is maximum amount of money that can be created for each unit of reserve. It is key requirement for maintaining economy's basic money supply. The simple deposit multiplier is 1 / rr * change in R. Deposit multiplier is the inverse of reserve ratio. The higher the reserve ratio the lesser will be the deposit multiplier. Reserve ratio is the minimum amount of money that must be kept in the deposit.

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NOTE: Your question isn't clear, Johnson. Would you mind checking it and writing it in a way you can be better helped?

Meanwhile, I hope these explanation below helps.

Answer and Explanation:

Two goods are said to be complementary goods if an increase in the price of a particular one leads to a commensurate decrease in the demand that buyers placed for the other one.

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A good is said to be an inferior good if there is a decrease in demand even though the buyers have experienced increase in their income.

4 0
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the firm's demand for labour is elastic. the total wage bill decreased even though wage rates have increased. this indicates that the firm's demand for labour is sensitive to wages. As a result of the rise in wages, the demand for labour by the firm fell more than the rise in price. This indicates that demand is elastic

Explanation:

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