If Widgets and Gidgets Are Complements and Both Are Normal

question 84

Multiple Choice

If widgets and gidgets are complements and both are normal goods,then an increase in the demand for widgets will result from:

• A) an increase in the price of widgets.
• B) a decrease in income.
• C) a decrease in the price of gidgets.
• D) an increase in the price of widgets and a decrease in income.

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Definitions:

Food, Conservation, And Energy Act

A comprehensive piece of legislation passed in the United States that governs agricultural and food policy, aimed at promoting conservation, energy efficiency, and food security.

Farm Subsidies

Financial aid and support programs provided by governments to help farmers reduce the risk of farming, ensuring a stable food supply.

Direct Payments

Cash transfers from governments to individuals or businesses for specific purposes, often used in agricultural subsidies or social welfare programs.

Agricultural Price Supports

Government interventions to stabilize or increase agricultural commodity prices through mechanisms such as subsidies, minimum price settings, or purchasing surplus.