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Pie
3 years ago
12

If rice is an inferior good: a. the income elasticity of demand for rice will be positive. b. an increase in income will cause t

he demand curve for rice to shift to the left. c. an increase in income will cause consumers to buy more rice at the current market price. d. a reduction in income would not affect the demand for rice, but it would increase the quantity demanded.

Business
1 answer:
tatuchka [14]3 years ago
3 0

Answer: The answer is b -an increase in income will cause the demand curve of an inferior good to shift to the left.

Explanation: An inferior good is a good whose demand reduces as income increases. It's demand has an inverse or negative relationship with income. Therefore as the income of the individual increases, the demand for an inferior good reduces. On a graph, the reduction in demand is depicted by an inward shift of the demand curve or a shift of the demand curve to the left to show a reduction in demand. Income is one of the factors that leads to a shift in the demand curve. The income elasticity would be negative

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Answer:

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Sales                                     na              1,500

Costs                                    na              1,050

Profit before tax                   na                450

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Net income                           na                315

Dividends                              na                95

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Current assets        100        115          Current liabilities 70          81

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c) Decker Enterprises does not need additional financing, but has excess financing because the Liabilities and Equity are greater than the assets.

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brainly.com/question/20714310

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