When the Price of a Good Increases, Consumers Buy a Smaller

question 142

Multiple Choice

When the price of a good increases, consumers buy a smaller quantity because of the ________ effect and the ________ effect.

• A)substitution; income
• B)normal; inferior
• C)substitute; complement
• D)price; quantity

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Definitions:

Welfare Rolls

Lists or records of individuals receiving government assistance, typically in the form of cash or food support.

Supplemental Nutrition Assistance Program

The Supplemental Nutrition Assistance Program (SNAP) is a federal assistance program in the United States that provides food-purchasing assistance for low- and no-income people.

Cash-Vouchers

These are instruments provided to individuals or entities which can be exchanged for goods or services instead of using actual cash.