Cashews and Asparagus Are Normal Goods

question 557

Multiple Choice

Cashews and asparagus are normal goods. When the price of asparagus falls, the substitution effect by itself causes

• A)the consumer to feel richer, so the consumer buys more cashews.
• B)the consumer to feel richer, so the consumer buys less cashews.
• C)cashews to be relatively more expensive, so the consumer buys less cashews.
• D)cashews to be relatively less expensive, so the consumer buys more cashews.

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Definitions:

Culture Change

The dynamic process through which the beliefs, norms, social activities, arts, and behaviors of a society evolve over time.

Diffusion

The process of spread of substances from an area of higher concentration to an area of lower concentration, often described in the context of gases, liquids, or social ideas.

Neolithic Crops

Early domesticated plants grown during the Neolithic era, part of the transition from nomadic life to agriculture and settled communities.

Productivity

The measurement of the efficiency of production, often defined as the ratio of output per unit of input, within a specific time period.