Suppose Peanut Butter Is an Inferior Good for Ilya and the Price

question 125

Multiple Choice

Suppose peanut butter is an inferior good for Ilya and the price of peanut butter rises.What will happen to Ilya's consumption of peanut butter?

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

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Definitions:

Pectoral Girdle

Site of attachment of the upper limb to the trunk; consists of the scapula and the clavicle; also called shoulder girdle.

Cervical Vertebrae

The seven vertebrae in the neck region of the spine that support the skull and enable a range of head movements.

Nasal Septum

The cartilage and bone that separates the nasal cavity into two nostrils.

Inferior Nasal Conchae

Scroll-like bones located within the nasal cavity that increase the surface area for filtering, warming, and humidifying the air we breathe.