Which of the following situations is an example of how income affects supply, demand, and consumption?

A.

Grocers in Arizona and Texas stock a large supply of Mexican products, while grocers in New York stock many kosher products.

B.

Beef is extremely cheap in the US, where it is consumed often, but it is extremely expensive in Japan, where it is consumed less.

C.

Rice is a common staple in Asia, while potatoes are a common staple in America.

D.

Lobster and caviar are easily affordable in some neighborhoods, while hotdogs and coleslaw are easily affordable in others.

Question

Geography

Kolton Wilkinson

4 October, 14:23

Which of the following situations is an example of how income affects supply, demand, and consumption?

A.

Grocers in Arizona and Texas stock a large supply of Mexican products, while grocers in New York stock many kosher products.

B.

Beef is extremely cheap in the US, where it is consumed often, but it is extremely expensive in Japan, where it is consumed less.

C.

Rice is a common staple in Asia, while potatoes are a common staple in America.

D.

Lobster and caviar are easily affordable in some neighborhoods, while hotdogs and coleslaw are easily affordable in others.

+1

Answers (2)

Know the Answer?

Fabian Savage · Answer 1

Answer: A

Income in Arizona, Texas and New York are relatively high thus grocers can stock a large supply of Mexican products as they wish. The result of this is a low supply of said products in the market causing high prices. High price causes less demand and further less consumption. This is an example of how income affects supply, demand, and consumption.

Karla Nixon · Answer 2

A. Grocers in Arizona and Texas stock a large supply of Mexican products, while grocers in New York stock many kosher products.