Assume that a college student purchases only Ramen noodles and textbooks. If Ramen noodles are an inferior good and textbooks are a normal good, then the substitution effect associated with a decrease in the price of Ramen noodles, by itself, will result in
a. a decrease in the consumption of textbooks and a decrease in the consumption of Ramen noodles.
b. a decrease in the consumption of textbooks and an increase in the consumption of Ramen noodles.
c. an increase in the consumption of textbooks and an increase in the consumption of Ramen noodles.
d. an increase in the consumption of textbooks and a decrease in the consumption of Ramen noodles.
b
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In the above figure, if the interest rate is 8 percent per year, the quantity of money demanded is
A) less than the quantity of money supplied, and the interest rate will change. B) less than the quantity of money supplied, and the demand curve for money will shift. C) greater than the quantity of money supplied, and the supply curve of money will shift. D) greater than the quantity of money supplied, and the interest rate will change. E) greater than the quantity of money supplied, and the demand curve for money will shift.
Please describe in detail a self-fulfilling currency crisis
What will be an ideal response?
The lowest possible unemployment rate that will not cause the inflation rate to increase is called:
A. the nonaccelerating inflation rate of unemployment (NAIRU). B. the natural rate of unemployment. C. "full employment." D. All of these statements are true.
If you earned an additional $1,000 of taxable income and paid $220 in taxes on that income, what would your marginal tax rate be?
What will be an ideal response?