-Ramen Noodles Are Hotter Than Ever in 2010

question 300

Multiple Choice

-Ramen noodles are hotter than ever in 2010. Considered a bargain meal for cash-starved college students... last year, 4 billion individual packets were devoured in the United States, a 4 percent increase over 2006. Once students leave college for that first well-paying job, however, they stop eating Ramen. If the price of ramen falls, and income remains the same, describe the substitution and income effects that occur.

• A) Both the substitution and income effects would be positive.
• B) The substitution effect would be negative and the income effect would be positive.
• C) Both the substitution and income effects would be negative.
• D) The substitution effect would be positive and the income effect would be negative.

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Definitions:

Delivering

The act of carrying something to a person or place, or the process of achieving something as promised or expected.

Relevant Information

Data or knowledge that is directly applicable or significant to the decision-making process or problem-solving situation at hand.

Knowledge Management

The act of generating, disseminating, applying, and overseeing an organization's knowledge and information.

Positive

Characterized by the presence of or emphasizing what is good or beneficial in a situation or person.