The Demand Curve for Corn Is Downward Sloping

question 130

Multiple Choice

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

• 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.

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Definitions:

Embryonic Period

The period of prenatal development that occurs two to eight weeks after conception. During the embryonic period, the rate of cell differentiation intensifies, support systems for the cells form, and organs appear.

6 Weeks

A time frame often referenced in developmental and health contexts, marking specific milestones or recovery checks.

7 Months

A period of time equivalent to approximately 213 to 217 days, often referred to in the context of age or development stages.

Umbilical Cord

A life-support system that contains two arteries and one vein and connects the baby to the placenta.