The Demand Curve for Corn Is Downward Sloping

question 291

Multiple Choice

The demand curve for corn is downward sloping. If the price of corn, an inferior good, falls,

• A) the income effect which causes you to reduce your corn purchases is smaller than the substitution effect which causes you to increase your corn purchases, resulting in a net increase in quantity demanded.
• B) the income effect which causes you to increase your corn purchases is larger than the substitution effect which causes you to reduce your corn purchases, resulting in a net increase in quantity demanded.
• C) both the income and substitution effects reinforce each other to increase the quantity demanded.
• D) the income and substitution effects offset each other, but the price effect of an inferior good leads you to buy less corn.

---

Definitions:

ASME

American Society of Mechanical Engineers, a professional association that sets codes and standards for engineering to ensure the safety and reliability of products and services.

Mechanical Engineers

Professionals who use principles of physics and mathematics to design, analyze, manufacture, and maintain mechanical systems.

American Society

An organization or association in the United States dedicated to a specific cause, profession, or field of study.

Snap Rings

Circular, semi-flexible metal rings with open ends that fit into grooves and are used to secure components on shafts or in housing.