1) If milk is a normal good, then a decrease in consumers' income will definitely cause a.

A decrease in the demand for milk.

b. An increase in the demand for milk.

c. An increase in the supply of milk.

d. A decrease in the supply of milk.

2) . Use the following table which shows the short-run production function of a cricket ball manufacturer and answer the question. Diminishing marginal returns set in when the ________ worker is added to the production process

S R60 R50 Price D Q 100 120 150Number of Number of Output machines workers (Cricket balls/day) DO 0 8 1 60 8 2 140 3 230 4 300 00 00 00 00 5 340 360\fItem Income elasticity of demand High income Low income households households Fumiture 1.50 1.35 Plasma TVs 0.85 -0.65