If the price of an inferior good falls, the income effect will result in households buying ________ of the good and the substitution effect will result in households buying ________ of the good.
A. more; more
B. more; less
C. less; more
D. less; less
Answer: C
Economics
You might also like to view...
"To count as required reserves, the reserves must be on deposit at the bank's district Federal Reserve Bank." Is the previous statement correct or incorrect?
What will be an ideal response?
Economics
Which of the following is not a government transfer program?
a. unemployment compensation b. Social Security c. food stamps d. Medicare e. movement of soldiers to a different military base
Economics
All of the following are point sources, EXCEPT
a. publicly-owned treatment works (POTW) b. factory smokestack b. recreational motor boat d. urban runoff
Economics
The ________ interest rate equals the ________ interest rate minus ________.
What will be an ideal response?
Economics