For normal goods
A. the substitution effect of a price decrease will decrease the quantity of the good demanded while the income effect of a price decrease will increase the quantity of the good demanded.
B. the substitution and income effects of a price decrease will both increase the quantity of the good demanded.
C. the substitution effect of a price decrease will increase the quantity of the good demanded while the income effect of a price decrease will decrease the quantity of the good demanded.
D. the substitution and income effects of a price decrease will both decrease the quantity of the good demanded.
Answer: B
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If Qs = -20 + 10p, and Qd = 400 - 20p, what is the equilibrium price?
A) 14 B) 42 C) 12.67 D) 38
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a. True b. False Indicate whether the statement is true or false