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 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.
B) 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.
C) the income and substitution effects offset each other but the price effect of an inferior good leads you to buy less corn.
D) both the income and substitution effects reinforce each other to increase the quantity demanded.
Question 2
Economic costs of production differ from accounting costs in that
A) economic costs include expenditures for hired resources while accounting costs do not.
B) accounting costs are always larger than economic cost.
C) accounting costs include expenditures for hired resources while economic costs do not.
D) economic costs add the opportunity costs of a firm using its own resources while accounting costs do not.
Jeremy Deller, A Good Day for Cyclists (painted by Sarah Tynan).
Inferior mirage
Growth in the demand for oil from the developing world
The Kuznets Curve
IQ scores form what mathematicians call a normal distribution "bell curve"
Opener Pigment mutations within an ear of corn, caused by transposition of the Ds element