The Income Effect of a Decrease in the Price of Potatoes

question 73

Multiple Choice

The income effect of a decrease in the price of potatoes (an inferior good) is a(n)

• A)decrease in the demand for potatoes
• B)decrease in the quantity demanded of potatoes
• C)increase in the demand for potatoes
• D)increase in the quantity demanded of potatoes
• E)new demand curve because everything else is no longer constant

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Definitions:

Fallacies

Erroneous argumentative patterns or misleading reasoning that undermine the logic of an argument.

False

A term indicating that a statement or proposition does not align with reality or is incorrect.

Insufficient Basis

A flaw in reasoning or argumentation where the evidence or grounds provided are not adequate to support the conclusion drawn.

True

Accurate or consistent with fact or reality; not false.