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- A population of rabbits inhabits an island that has an active volcano. The volcano erupted and covered the island destroying most of the food resources available for animals living in the area. As the island recovers, the soil no longer allows for these food resources to grow.How will this most likely affect the rabbit population on the island?A- There will be fewer predators that eat the rabbits, so the rabbit population will quickly grow.B- Other animals will eat less food, so the rabbit population will remain stable.C- The rabbits will adapt to eating very little food, so the population will increase slowly over time.D- Few rabbits will be able to find food, so the population will die off and become extinct.
- Consider each of the following scenarios and determine whether it is an example of the income effect, the substitution effect, or diminishing marginal utility. a. Sasha likes to treat herself to a small latte each afternoon. On Wednesdays, when the coffee shop decreases the price of lattes, Sasha buys a large latte instead. Income effect correct b. The price of chicken nuggets rises from $3 to $3.50 for a box of six. The price of hamburgers stays the same. Mateo used to eat chicken nuggets three times a week. All else equal, he now eats them twice a week. Substitution effect correct c. Jack offers Victoria a plate of a dozen chicken wings. Victoria enjoys the first wing the best, the second wing a little bit less, and by the seventh wing, she has had enough and chooses not to eat the remaining five wings. Diminishing marginal utility correct