Petrol Is a Normal Good

question 19

Multiple Choice

Petrol is a normal good. If the price of petrol falls, a consumer buys more petrol because of

• A) only an income effect.
• B) only a substitution effect.
• C) an increase in the marginal rate of substitution.
• D) both an income effect and a substitution effect.

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Definitions:

Integrated Pest Management

A comprehensive approach to pest control that uses various environmentally sensitive methods.

Governments

Institutions or bodies that govern a community, region, or country, responsible for setting and implementing policies and laws.

Alfalfa

A perennial flowering plant widely cultivated as fodder for livestock, known for its high nutrient content and nitrogen-fixing ability.

Potato Fields

Agricultural land specifically cultivated for growing potatoes.