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

---

Definitions:

Guidelines

Set of principles or instructions designed to inform how something should be done or what actions should be taken in specific situations.

Persuasive Message

A form of communication specifically designed to influence or convince the audience to accept a particular perspective, belief, or action.

Persuasive Message

A type of communication aimed at influencing the attitudes, beliefs, or behaviors of others through factual evidence and logical arguments.

Supplier Obligations

The responsibilities and duties a supplier has towards their customers, such as providing products or services that meet agreed-upon standards.