(Solved) The demand curve for corn is downward sloping. If the price of corn, an inferior good, falls, then

Question 1.

In reaction to the passage of the Smoot-Hawley Tariff, Canada as well as many other U.S. trading partners

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refused to import any products from the United States.

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eliminated tariffs on U.S. imports.

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enacted large increases in tariffs on U.S. imports.

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refused to export any products to the United States.

Question 2.

The demand curve for corn is downward sloping. If the price of corn, an inferior good, falls, then

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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.

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the income and substitution effects offset each other but the price effect of an inferior good leads you to buy less corn.

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both the income and substitution effects reinforce each other to increase the quantity demanded.

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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.

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The demand curve for corn is downward sloping. If the price of corn, an inferior good, falls, then

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