Scenario 5-3 The Supply of Aged Cheddar Cheese Is Inelastic,and the Supply

question 6

Multiple Choice

Scenario 5-3
The supply of aged cheddar cheese is inelastic,and the supply of bread is elastic.Both goods are considered to be normal goods by a majority of consumers.Suppose that a large income tax increase decreases the demand for both goods by 10%.
-Refer to Scenario 5-3.The equilibrium price will

• A)increase in both the aged cheddar cheese and bread markets.
• B)increase in the aged cheddar cheese market and decrease in the bread market.
• C)decrease in the aged cheddar cheese market and increase in the bread market.
• D)decrease in both the aged cheddar cheese and bread markets.

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Definitions:

Campus

A term used to describe the physical grounds and buildings where a college or university is located.

Placebo Effects

The phenomenon in which a person experiences a perceived improvement in condition due to their belief in the treatment's efficacy, despite it having no therapeutic effect.

Anxiety Levels

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Reduced Anxiety

A decrease in feelings of worry, nervousness, or unease about something with an uncertain outcome, often as a result of deliberate action or therapy.