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:

Driver's License

An official document permitting a specific individual to operate one or more types of motorized vehicles on public roads.

Cohort

A group of individuals who share a common characteristic or experience within a defined period, often used in studies or statistical analyses.

Critical Period

A specific time during development when the presence or absence of certain experiences has a profound effect on the formation of abilities or characteristics.

Specific Event

A unique occurrence or happening at a particular time and place.