Suppose Potatoes Are an Inferior Good and the Price of Potatoes

question 120

Multiple Choice

Suppose potatoes are an inferior good and the price of potatoes decreases.Then:

• A)the substitution effect will cause a decrease in the consumption of potatoes.
• B)the income effect will cause an increase in the consumption of potatoes.
• C)the income effect will cause a decrease in the consumption of potatoes.
• D)the substitution effect will cause an decrease in the consumption of potatoes and the income effect will cause a decrease in the consumption of potatoes

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Definitions:

Opportunities for Women

Chances or avenues available for women to advance, grow, or succeed in various fields, emphasizing progress towards gender equality.

Retail Industry

Comprises businesses that sell goods and services directly to the end consumer for personal, non-business use.

Small Business

An independently owned and operated company that is limited in size and revenue depending on the industry.