The Demand Curve for Canned Peas Is Downward Sloping

question 88

Multiple Choice

The demand curve for canned peas is downward sloping.If the price of canned peas, an inferior good, rises, then

• A)the income effect which causes you to reduce your canned peas purchases is smaller than the substitution effect which causes you to increase your purchases, resulting in a net increase in quantity demanded.
• B)the income effect which causes you to increase your canned peas purchases is smaller than the substitution effect which causes you to reduce your purchases, resulting in a net decrease in quantity demanded.
• C)both the income and substitution effects reinforce each other to decrease the quantity demanded.
• D)the income and substitution effects offset each other but the price effect of an inferior good leads you to buy more canned peas.

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Definitions:

Aqueous Humor

A clear, watery fluid in the eye, located between the cornea and the lens, helping to maintain intraocular pressure and provide nutrients to the eye.

Pressure

The force exerted per unit area; in a fluid, it is often due to the weight of the fluid above and is measured in units such as Pascals or pounds per square inch.

Glaucoma

A group of eye conditions that lead to damage to the optic nerve, often associated with increased pressure in the eye, resulting in loss of vision if not treated.

Inner Ear

Of the mammalian ear, region that contains the fluid-filled vestibular apparatus and cochlea.