Multiple Choice
The owner of a kayak tour business has been looking over the latest data from the Census, which reported that income in the area where she is based has increased by 20%. Assuming that participating in a kayak tour is a normal good, which of these would be an accurate prediction of what could happen to kayak tour sales, ceteris paribus?
A) Since incomes have increased by 20% in the area, the owner can expect to see a decrease in sales, ceteris paribus.
B) Since incomes have increased by 20% in the area, the owner can expect to see no change in sales, ceteris paribus.
C) Since incomes have increased in the area, the owner can expect to see a 20% increase in sales, ceteris paribus.
D) Since incomes have increased by 20% in the area, the owner can expect to see an increase in sales, ceteris paribus.
Correct Answer:

Verified
Correct Answer:
Verified
Q202: During the long run, all assets or
Q203: Jack owns a pumpkin patch and has
Q204: Supply is highly elastic in the market
Q205: In the United States, the federal individual
Q206: In general, the flatter the supply curve,
Q208: If the managers of the Miami Transit
Q209: If demand is inelastic, a reduction in
Q210: A poultry rancher discovered that when she
Q211: If the cross elasticity of demand for
Q212: One practical reason that economists use percentages