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:

Training Needs

The specific skills or knowledge gaps that need to be addressed for an individual or group to reach their goals efficiently.

Smooth Muscle

A type of involuntary, non-striated muscle found within the walls of organs and structures such as blood vessels, the digestive tract, and the uterus.

Respiratory Airways

The parts of the respiratory system through which air flows, starting from the nose and mouth down to the lungs.

Intestine

A part of the gastrointestinal tract that digests food and absorbs nutrients into the body.