When Oranges Increase in Price, the Income Effect

question 4

Multiple Choice

When oranges increase in price, the income effect

• A) decreases the consumption of oranges only if oranges are a normal good.
• B) decreases the consumption of oranges only if oranges are an inferior good.
• C) always increases the consumption of oranges.
• D) always decreases the consumption of oranges.

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Definitions:

Output Wires

In neuroscience, this term is not specifically used; in general electronics, it refers to the conducting wires that carry signals out from a device or circuit.

Axons

Long, slender projections of nerve cells that transmit electrical impulses away from the neuron's cell body to other neurons or to muscles or glands.

Dendrites

Dendritic processes of a neuron that capture signals from other neurons.

Terminal Buttons

Terminal buttons are small knobs at the end of an axon that release neurotransmitters, facilitating the transfer of nerve impulses from one neuron to another.