|
Title: The demand curve for canned peas is downward sloping. If the price of canned peas, an inferior good, ... Post by: dillon_green23 on Oct 9, 2019 The demand curve for canned peas is downward sloping. If the price of canned peas, an inferior good, rises, then
▸ the income and substitution effects offset each other but the price effect of an inferior good leads you to buy more canned peas. ▸ the income effect which causes you to reduce your canned peas purchases is smaller than the substitution effect which causes you to increase your purchases, resulting in a net increase in quantity demanded. ▸ both the income and substitution effects reinforce each other to decrease the quantity demanded. ▸ the income effect which causes you to increase your canned peas purchases is smaller than the substitution effect which causes you to reduce your purchases, resulting in a net decrease in quantity demanded. Title: The demand curve for canned peas is downward sloping. If the price of canned peas, an inferior good, ... Post by: osvaldoguzman on Oct 9, 2019 Content hidden
|