The Figure Given Below Shows the Demand Curves for Five

question 103

Multiple Choice

The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1

-Ceteris paribus, a 10 percent increase in income results in a 50 percent decline in the quantity of potatoes purchased. This implies potatoes can be categorized as _____.

• A)complements
• B)substitutes
• C)inferior goods
• D)normal goods
• E)luxury goods

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Definitions:

Free Trade

An economic policy that allows imports and exports with little to no barriers like tariffs, quotas, or subsidies.

Pairs of Shoes

Units of footwear intended to be worn on people's feet, typically sold, bought, or produced in matching sets of two.

Domestic Price

The price of goods or services within a country's borders, unaffected by import or export factors.

Trade Price

The price at which goods or services are traded between parties, often wholesale prices.