When the price of an inferior good falls, the substitution effect leads to ________ in the quantity purchased and the income effect leads to ________ in the quantity purchased
A) an increase; an increase
B) an increase; a decrease
C) a decrease; an increase
D) a decrease; a decrease
B
Economics
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Economics can decide
a. the appropriate trade-off between fairness and efficiency. b. which pricing arrangements are fair and which are unfair. c. whether a pricing decision will impose heavy inefficiency costs on society. d. All of the above are correct.
Economics
Aggregate demand is ______ than the quantity of real GDP demanded at different price levels.
a. slightly more b. less c. the same as d. much more
Economics
If the average level of nominal income in a nation is $44,000 and the Consumer Price Index is 175, the average real income would be about
A. $77,000. B. $25,143. C. $18,857. D. $44,000.
Economics
The economizing problem is
What will be an ideal response?
Economics