Refer to the Information Provided in Table 24

question 225

Multiple Choice

Refer to the information provided in Table 24.3 below to answer the question(s) that follow.
Table 24.3
-Refer to Table 24.3. At the equilibrium level of income, leakages equal ________ billion.

• A) $0
• B) $200
• C) $400
• D) $600

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Definitions:

Bananas

A long, curved fruit with a yellow skin and soft, sweet flesh inside, grown in many tropical regions of the world.

Perfect Complements

Goods that are used together in fixed proportions due to the nature of their consumption or utility.

Income Effect

The change in an individual's or economy's consumption patterns due to a change in real income.

Substitution Effect

The economic principle that as the price of one good increases, consumers will replace it with a cheaper alternative, holding utility constant.