The Income Effect of a Decrease in the Price of Potatoes,an

question 127

Multiple Choice

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

• A)increase in the demand for onions.
• B)decrease in the quantity demanded of potatoes.
• C)increase in the demand for potatoes.
• D)increase in the quantity demanded of potatoes.
• E)decrease in the demand for onions.

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Definitions:

Reasonable Expectation

refers to what an average person might foresee or predict as a likely outcome under certain circumstances, often used as a standard in legal and ethical considerations.

Revocation

The official cancellation or withdrawal of an offer, license, right, or privilege.

Mailbox Rule

A legal principle stating that an offer is considered accepted once the acceptance is dispatched by the offeree, not when received by the offeror.

Mailbox Rule

A legal principle stating that an offer is considered accepted once the acceptance is dispatched, not when it is received.