Answer: Air travel is a normal good and vacation travel by car is an inferior good
Explanation: What is a normal good and what is an inferior good.
Normal goods are those goods for which the demand rises as consumer income rises. While inferior goods are goods whose demand increases when consumer income decreases.
This therefore means that the demand of inferior goods is inversely related to the income of the consumer.
From the question above, we can say that car trips are inferior goods while the air travel are normal goods.
Answer:
a. monopolistic elements in the economy will prevent an immediate sharp fall in prices as a result of decreasing demand
Explanation:
When there is recession the price of the factor goes down and with that, the insufficient demand for a certain good or services is eliminated. The reasoning is that the decrease in prices stimulates demand and adjust the market.
Keynes among other economist consider that unemployment increase during recessions because the nominal wages rate do not fall. As the union and worker do not want to see their wage decrease. Same is applied to prices which makes then inflexible in a downward direction.
While "supply creates its own demand" is "Says's Law" which is rejected in keynes main book "The general theory"
Hece option A is the only one which is true
Purrrr you look cute gurllll as you should
It would be faster for a human resource manager to use a phone to alert employees about a company picnic
