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exis [7]
2 years ago
8

Good Y is a normal good. If the average income of those who buy good Y rises, the _____________ curve for good Y will shift ____

________ resulting in a(n) _____________ in the equilibrium price of Y and a(n) ____________ in the equilibrium quantity of Y.
Business
1 answer:
Margarita [4]2 years ago
8 0

Answer:

Blank 1: Demand

Blank 2: Right

Blank 3: Increase

Blank 4: Increase

Explanation:

Good Y is a normal good. If the average income of those who buy good Y rises, the <u>demand</u> curve for good Y will shift <u>right</u> resulting in a(n) <u>increase</u> in the equilibrium price of Y and a(n) <u>increase</u> in the equilibrium quantity of Y.

This is explained from the graph given below:

Download docx
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Answer:

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Explanation:

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The correct option is D.

Care must taken so that one does include the cash of $38,000 contributed by Smart in Maxwell's capital account balance calculation,otherwise one would have concluded that option  E,$80,000($42,000+$38,000)

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