Suppose the Price of an Inferior Good X, That Follows

question 99

Multiple Choice

Suppose the price of an inferior good X, that follows the law of demand, decreases. In this case, the substitution effect states that the consumer purchases _____ of good X, and the total effect is _____ in consumption of good X.

• A) more; an increase
• B) more; a decrease
• C) less; an increase
• D) less; a decrease

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Definitions:

Export

The act of sending goods or services from one country to be sold or traded in another.

Westward Migration

The movement of people westward across the United States, particularly notable during the 19th century, often for the purpose of land acquisition and settlement.

Plantation Economy

An economic system historically associated with the large-scale agricultural estates that specialized in cash crops, reliant on slave or cheap labor, primarily found in the Americas.

Alabama

A state located in the southeastern region of the United States, known for its rich history in civil rights and its diverse geographical features.