If a good is normal and its price decreases,
a. the income effect will be positive and the substitution effect will be positive.
b. the income effect will be negative and the substitution effect will be negative.
c. the income effect will be positive and the substitution effect will be negative.
d. the income effect will be negative and the substitution effect will be positive.
a
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When the price of a Caesar salad is $5.00, the demand for Caesar salads is elastic, and when the price is $4.00, the demand is inelastic. If Mike's Roadside Restaurant cuts the price from $5.00 to $4.00, its total revenue from Caesar salads ________
A) will increase B) will decrease C) will remain the same D) might increase, decrease, or remain the same
Suppose your nominal income this year is 5 percent higher than last year. If the inflation rate for the period was 3 percent, then your real income was:
a. increased by 1.67 percent. b. increased by 2 percent. c. increased by 8 percent. d. decreased by 0.6 percent.
A partnership requires the agreement of most or all partners to any major decision
a. True b. False Indicate whether the statement is true or false
Most unemployed persons fall into the category of job loser
Indicate whether the statement is true or false