Assume That Store Brand Cereal Is an Inferior Good

question 90

Multiple Choice

Assume that store brand cereal is an inferior good.If income rises,then the price of store brand cereal will ________ and the quantity sold of store brand cereal will ________.

• A)rise;rise
• B)rise;fall
• C)fall;fall
• D)fall;rise

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Definitions:

Manipulating

Handling or controlling something in a skilled manner, often with the connotation of unfairness or deceit.

Encoding

The process by which information is transformed into a format that can be stored in memory, an initial step in creating a new memory.

Retrieving

The process of getting information out of memory storage.

Core Knowledge Perspective

A theory in developmental psychology that suggests children are born with innate knowledge systems or core domains of thought.