Ask Question
5 September, 23:46

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. BY) both the income and substitution effects reinforce each other to increase the 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) 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.

0
Answers (1)
  1. 6 September, 01:45
    0
    D

    Explanation:

    The demand curve for corn is downward sloping. If the price of corn, an inferior good, falls, then 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.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “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 ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers