Suppose the Price of Potatoes Falls and We Observe a Decrease

question 111

Multiple Choice

Suppose the price of potatoes falls and we observe a decrease in an individual's purchases of potatoes. Which of the following can we infer?

• A) The income effect is negative and reinforces the substitution effect.
• B) The income effect is positive and exceeds the substitution effect.
• C) The income effect just offsets the substitution effect.
• D) The substitution effect outweighs the income effect.
• E) The income effect is negative and outweighs the substitution effect.

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Definitions:

Atrial Systole

Contraction of the atria.

Ventricles

Chambers of the heart that receive blood from the atria and expel it to the lungs or body.

Isovolumetric Contraction

A phase of the cardiac cycle where the ventricles contract with no change in volume, occurring between the closure of the atrioventricular valves and the opening of the semilunar valves.

Semilunar Valves

Heart valves located at the bases of the large arteries that leave the heart; they prevent blood from flowing back into the heart.