Ask Question
BusinessBusiness
4 October, 18:20

Corey receives some utility from consuming a frozen dinner (an inferior good) but would much rather purchase healthier food (a normal good). Suppose the price of a frozen dinner increases and the quantity that Corey purchases increases. Assume that a frozen dinner is not a Giffen good. Which effect causes Corey's quantity demanded of a frozen dinner to increase?

+5
Answers (1)
  1. 4 October, 21:42
    0
    The effect that causes Corey's quantity demanded of a frozen dinner to increase is known as income effect

    Explanation:

    Income effect refers to the change in consumption pattern or in the amount of the good consumed as a result of changes in the consumer's utility and purchasing power. Income effect can be positive or negative.

    Here, Corey derives some utility from consuming a frozen dinner (an inferior good). Therefore, as the price increases, the income effect will induce Corey (the consumer) to purchase more.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Corey receives some utility from consuming a frozen dinner (an inferior good) but would much rather purchase healthier food (a normal ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Chief financial officer Justin took his family on an Asian vacation using the company jet. He excuses his behavior by stating, "My family and I were spreading goodwill around the world for the company.
Answers (1)
Jansen Company's general ledger showed a checking account balance of $24,320 at the end of May 2018. The May 31 cash receipts of $2,390, included in the general ledger balance, were placed in the night depository at the bank on May 31 and were
Answers (1)
Bob has a huge collection of apparel associated with his favorite basketball team. He buys and wears them actively every time his team wins a match. Which of the following traits does Bob most exemplify?
Answers (1)
Maurice can drive or fly from Jacksonville, Florida to Atlanda, Georgia, for a one-day business trip. If he drives, he will be able to work three hours once he arrives in Atlanta, whereas traveling by plane will enable him to work eight hours.
Answers (1)
g An increase in supply is represented by Group of answer choices a rightward shift of the supply curve. a leftward shift of the supply curve. a downward movement along the supply curve. an upwared movement along the supply curve.
Answers (2)
New Questions in Business
Jenna owns a film production company that produces television commercials and short documentaries. she has only a few permanent employees but hires temporary crew members such as lighting specialists, camera operators, and set designers as needed to
Answers (1)
On December 31, the following data were accumulated for preparing the adjusting entries for Bellingham Realty: • The supplies account balance on December 31 is $5,865, The supplies on hand on December 31 are $1,330.
Answers (1)
An activity's normal time and cost are 8 and $100, respectively. its estimated crash time and cost are 6 and $160, respectively. what is this activity's crash cost per time unit?
Answers (1)
Assume a domestic company in the US, let's say Colgate-Palmolive, is deciding to export to a country where to date Colgate products are not present. Which method of entry will demonstrate lower fixed costs associated?
Answers (2)
Almost without exception, when leftist leaders have been voted into power in the late 20th and early 21st centuries in Latin America, they have upheld their allegiance to the ideals of social justice, human rights, and the elimination of the
Answers (1)
Home » Business » Corey receives some utility from consuming a frozen dinner (an inferior good) but would much rather purchase healthier food (a normal good). Suppose the price of a frozen dinner increases and the quantity that Corey purchases increases.
Sign Up Forgot Password?