Asked by
Dairyn Ramirez
on Dec 16, 2024
Verified
The income effect of a decrease in the price of potatoes,an inferior good,is a(n) :
A) increase in the demand for onions.
B) decrease in the quantity demanded of potatoes.
C) increase in the demand for potatoes.
D) increase in the quantity demanded of potatoes.
E) decrease in the demand for onions.
Income Effect
The change in an individual's or economy's income and how that change will impact the quantity demanded of a good or service.
Inferior Good
A good, such as used clothes, for which demand decreases, or shifts leftward, as consumer income rises.
Potatoes
A starchy tuber vegetable grown and consumed worldwide, serving as a staple food in many cultures.
- Understand the contrast between normal goods and inferior goods and perceive how income shifts affect their demand.
Verified Answer
JP
Learning Objectives
- Understand the contrast between normal goods and inferior goods and perceive how income shifts affect their demand.