If potatoes are an inferior good and the price of potatoes decreases, the _____ effect will cause a(n) _____ in the consumption of potatoes.
A) substitution; decrease
B) income; increase
C) income; decrease
D) substitution effect and the income; decrease
Correct Answer:
Verified
Q254: Gwen is consuming the optimal consumption bundle
Q255: Increases in the price of the good
Q256: Increases in the price of the good
Q257: Suppose the government decides to help poor
Q258: Use the following to answer question:
Figure: A
Q260: Frank buys only milk and cereal, both
Q261: Use the following to answer questions:
Figure: Indifference
Q262: Use the following to answer questions:
Figure: Harold's
Q263: Use the following to answer questions:
Figure: Indifference
Q264: Use the following to answer questions:
Figure: Harold's
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents