Suppose the Price of Rice Increases and You View Rice

question 90

Multiple Choice

Suppose the price of rice increases and you view rice as an inferior good. The substitution effect results in a ________ change in rice consumption, and the income effect leads to a ________ change in rice consumption.

• A) positive; positive
• B) positive; negative
• C) negative; positive
• D) negative; negative

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Definitions:

Sperm

Male reproductive cells or gametes involved in sexual reproduction, which carries the genetic information from the male to fertilize the female's ovum.

Ovum

A female reproductive cell or egg cell that, once fertilized by a sperm, can develop into a zygote.

Labia Minora

The folds of skin between the labia majora.

Uterus

A major female reproductive organ in mammals, including humans, where offspring are conceived and in which they gestate before birth.