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15. (From Web Quiz) Which of the following statements is correct about the Income Effect (IE) and the Substitution Effect (SE) of a change in the price of Good X: a) If IE and SE work in the same direction, then X is an inferior good b) If IE and SE work in opposite directions, then X is a normal good c) If IE and SE work in opposite directions, then X could have downward-sloping demand * d) If IE and SE work in the same direction, then X could have upward-sloping demand e) All of a) through d) are incorrect.
Consider the supply chain for canned peaches sold by a major food processing company. What are the sources of uncertainty in this supply chain?
Which of the following statements is an example of perfectly elastic demandβ?
A. Sherry is overwhelmed with buyers of her peaches when she lowers their price by a penny a pound compared to other sellers in the farmers' market
B. The price elasticity of demand for bottled water in Ohio is 1.5 while in Illinois it is 0.96
C. A 10 percent rise in Rita's income decreases the supply of canned fish by 5 percent.
D. A high incidence of diabetes has resulted in a large increase in demand for insulin.
