"If we take government action to raise incomes, this will increase demand for all goods and services!" your friend says. Your friend is O correct, because more income is associated with more demand in general O incorrect, because this is only true in the short run incorrect, because this is only true of normal goods O incorrect, because this is only true about a change in quantity demanded (not a change in demand)

"If we take government action to raise incomes, this will increase demand for all goods and services!" your friend says. Your friend is O correct, because more income is associated with more demand in general O incorrect, because this is only true in the short run incorrect, because this is only true of normal goods O incorrect, because this is only true about a change in quantity demanded (not a change in demand)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 8SCQ: The avenge annual income rises from 25,000 to 33,000, and the quantity of bleed consumed in a year...

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