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The Income Effect of a Decrease in the Price of Potatoes

Question 16

Multiple Choice

The income effect of a decrease in the price of potatoes, an inferior good, is a(n) _____


A) increase in the quantity demanded of 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.

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