Scenario 5-2 the Supply of Aged Cheddar Cheese Is Inelastic, and the and the Supply

question 34

Multiple Choice

Scenario 5-2
The supply of aged cheddar cheese is inelastic, and the supply of bread is elastic. Both goods are considered to be normal goods by a majority of consumers. Suppose that a large income tax increase decreases the demand for both goods by 10%.
-Refer to Scenario 5-2.Total consumer spending on aged cheddar cheese will

• A) increase, and total consumer spending on bread will increase.
• B) increase, and total consumer spending on bread will decrease.
• C) decrease, and total consumer spending on bread will increase.
• D) decrease, and total consumer spending on bread will decrease.

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Definitions:

Intestinal Wall

The multi-layered tissue lining the intestines, responsible for nutrient absorption and barrier protection against pathogens.

Abnormal Dilations

unusual expansions or widenings of vessels, cavities, or organ passages in the body.

Metabolism

The set of life-sustaining chemical reactions in organisms that involve the conversion of food to energy, the construction of proteins and nucleic acids, and the breakdown of waste products.

Fats

Nutrients that give energy, support cell growth, and help in the absorption of certain vitamins.