Apples Are a Normal Good, So If the Price of an Apple

question 202

Multiple Choice

Apples are a normal good, so if the price of an apple increases from 50¢ to 60¢, the quantity of apples demanded decrease because of

• A) the substitution effect only.
• B) the income effect only.
• C) a change in income.
• D) the substitution and income effects.

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Definitions:

Ratification

The act of formally approving an agreement or decision, making it officially valid, often after the fact.

Acquiescence

Silent or passive acceptance or agreement without protest.

Concealment

The act of hiding or withholding important information, particularly in legal or financial contexts.

Material

Referring to facts or information that are significant or essential to the issue or subject at hand.