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If You Expect the Economy Is Going to Experience a Boom

Question 7

Multiple Choice

If you expect the economy is going to experience a boom and average income in the economy will rise in the foreseeable future, the type of firm that would be able to increase its sales if your expectations are met is


A) one that sells an inferior good.
B) one that sells a necessity good.
C) one that sells a luxury good.
D) one that sells a price-inelastic good.

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