Which of the following statements is true?

a

An increase in income increases the demand forinferior goods, such as books, movie tickets, food, and clothes.

b

Most goods are "normal" goods.

c

An increase in income reduces the demand fornormal goods, such as Ramen soup and Greyhound bus rides.

d

All of the above.

e

Only a) and c)

Question 24(1 point)

Which of the following statements is true?

a

Changes in wealth affect the demand for goods.

b

An increase in the price of asubstitute good

reduces the demand for the other good.

c

A decrease in the price of acomplementary good

reduces the demand for the other good.

d

All of the above.

e

Only a) and b)

Question 25(1 point)

Which of the following statements is true?

a

The expectation that the price of a good will increase significantly very soon increases today's demand for the good.

b

The expectation that one's income will increase significantly very soon increases today's demand for goods.

c

Supply (S)is a relationship between the price of a good, and thequantity demanded of the good, ceteris paribus (everything else the same).

d

All of the above.

e

Only a) and b)