Use the following to answer questions 26-28:
Figure 5.15 
-(Figure 5.15) Because of the income effect associated with the decrease in the price of good X, the quantity of good X purchased:
Definitions:
Laissez-Faire Economy
An economic system where transactions between private parties are free from government intervention such as regulations, privileges, tariffs, and subsidies.
Command Economy
An economic system where the government makes all decisions on the production and consumption of goods and services.
Free Enterprise
An economic system based on private ownership and the freedom of individuals to start and manage their own businesses.
Laissez-Faire Economy
An economic system in which transactions between private parties are free from government intervention such as regulations, privileges, tariffs, and subsidies.
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