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Bingel [31]
4 years ago
12

If demand for personal computers increases as a result of an increase in income, a. personal computers must be a normal good b.

personal computers must be an inferior good c. personal computers must be a complement d. the substitutes for personal computers must be inferior goods e. the substitution effect is larger than the income effect
Business
1 answer:
dexar [7]4 years ago
3 0

Answer: Personal computers must be a normal good.

Explanation:

Normal good is a type of commodity available in a market, in which the commodity's demand increases as income of the buyers increase. The normal goods posses a positive income elasticity of demand(where demand is directly proportional to income).

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Her real income has decrease by  $7,333.33

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<em>Real income is the amount of goods and services that a give amount of quantity money can purchase. It is also known as the purchasing power of money.  </em>

To determine if there has been a change in her real income, we will compare her real income 20 years ago to her real income 5 years later. This will be done as follows;

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Real income in current year = (CPI in base year/CPI in current year ) × Nominal income

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Step 2

Determine change in real income

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If Modern Company received $3,650 from Connor Young Company on March 12 for the total amount of an account that had been written
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