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Suppose the Supply Curve for Breakfast Cereals Is Upward Sloping

Question 51

Multiple Choice

Suppose the supply curve for breakfast cereals is upward sloping. Suppose also that as average household income increases we observe a fall in the price of breakfast cereal. We can conclude that breakfast cereal is a(n)


A) normal good.
B) luxury good.
C) inferior good.
D) substitute good.
E) necessity good.

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